Instacart Bags $265M Round at
$39B Market Cap
March 3, 2021
Instacart has raised $265 million as part of a new financing round led by
existing investors including Andreessen Horowitz, Sequoia Capital, D1 Capital
Partners, Fidelity Management & Research Company LLC, and T. Rowe Price
Associates, Inc. This investment comes as the adoption of online grocery has
accelerated and consumer demand for Instacart's delivery and pickup services
continues to grow. Today's announcement increases the company's valuation to $39
"Today's fundraising reflects the strength of Instacart's business, the growth
our teams have delivered and the incredible opportunity ahead," said Nick
Giovanni, Chief Financial Officer for Instacart. "This past year ushered in a
new normal, changing the way people shop for groceries and goods. While grocery
is the world's largest retail category with annual spend of $1.3 trillion in
North America alone, it's still in the early stages of its digital
transformation. As online grocery penetration increases over the coming years,
we'll continue to invest in our people, products and partners to support all of
the communities we serve."
Instacart expects to deploy the new capital in a number of ways, including
increasing its corporate headcount by 50% in 2021, as well as further investing
in several key areas such as the Instacart Marketplace, which connects customers
and retailers; Instacart Advertising, which enables Consumer Packaged Goods (CPG)
companies of all sizes to reach customers shopping online; and Instacart
Enterprise, which supports the entire grocery ecosystem by offering end-to-end
ecommerce solutions for retailers.
"The Instacart team unlocked one of the most operationally complex industries
and brought it online to the benefit of the entire grocery ecosystem. As a long
time investor, we've been incredibly impressed by the team's resilience and how
they met the moment of 2020," said Jeff Jordan, Managing Partner at Andreessen
Horowitz. "We believe this is just the beginning for online grocery and
Instacart is well-positioned to continue to lead in this emerging space."
"Sequoia has been a consistent investor in Instacart since 2013 when we formed
our original partnership and the online grocery market was still in its
infancy," said Michael Moritz, Partner at Sequoia Capital. "Now, eight years
later, Instacart, which has delivered groceries and goods for millions of
customers across North America, is the category leader and fulfilling its role
as a vital service for consumers, a reliable partner for retailers and an
effective platform for advertisers."
were impressed with Instacart's ability to meet surging demand in 2020 and are
excited to further invest," said Dan Sundheim, Founder of D1 Capital Partners.
"We remain bullish about the future of the online grocery space and believe the
opportunity in front of Instacart is significant, particularly as the company
scales its Instacart Advertising and Instacart Enterprise offerings to help
serve its grocery partners."
"Instacart has clearly proved its value for millions of customers, thousands of
shoppers, and hundreds of retailers," said Andrew Davis, Director of Private
Investments at T. Rowe Price. "We are pleased to continue to invest in Instacart
to scale its growth plans and bring more benefits to the grocery e-commerce
Today, Instacart partners with nearly 600 national, regional and local
retailers, including unique brand names, to offer delivery and pickup services
from more than 45,000 stores to over 85% of U.S. households and 70% of Canadian
households. In 2020, the company added more than 200 new retailers and more than
15,000 new store locations to the Instacart marketplace. The company also
expanded its same-day delivery and pickup offering across several new
categories, including prescriptions and over-the-counter medications, office
supplies, electronics, health, beauty and wellness, home decor, sports
equipment, and more.