Grocery delivery startup Instacart raised an extra $271 million in November, bringing its latest round of funding to $871 million. A source told Reuters that the additional funding comes from investors, including U.S. hedge fund Tiger Global Management and existing investors Coatue Management and Valiant Capital. Instacart has raised $1.87 billion in total, with a $7.87 billion valuation, the publication said.
Last month, it was revealed that Instacart raised $600 million, giving it a valuation of $7.6 billion. The funding round was led by hedge fund D1 Capital Partners, and came only six months after the startup closed on a $350 million round of investing. At that time, the company had a valuation of $4.35 billion.
Just last week, the company announced the national expansion of Instacart Pickup, a new grocery click-and-collect service that provides customers with broadened delivery and/or pickup options, enabling them to order via Instacart and pick up the groceries at retailers.
The nationwide rollout of Instacart Pickup comes on the heels of a product pilot test that the company ran for multiple months, in which customers offered their feedback. Based on the positive responses, it expanded its partnerships with ALDI, Cub Foods, Food Lion, Price Chopper, Publix, Schnucks, Smart & Final, Sprouts, Tops Friendly Markets, Wegmans and others to provide the Instacart Pickup service in close to 200 stores across 25 markets near Atlanta, Boston, Charlotte, Minneapolis, Nashville, San Francisco and Washington, D.C.
“We want to make grocery shopping effortless by helping our customers get the groceries they need from the retailers they love. Our customers want choice, and we’re excited to now offer the pickup option they’ve been asking for,” said Nilam Ganenthiran, chief business officer at Instacart, at the time.
He continued, “In our house, sometimes the ritual of going to the grocery store is inspiring and helps us meal-plan for the week. Other times, we’re busy and can’t get to the store, so delivery makes life easier for us. For families that are out and about and running errands, a pickup solution might be a better fit for their family rhythm. I’m excited to work with our existing retail partners to now offer Instacart Pickup, and look forward to adding more beloved grocers over the coming months and expanding this service to even more families.”