Instacart has raised $225 million as part of a new financing round led by DST Global and General Catalyst, with existing investor D1 Capital Partners participating. The investment comes as Instacart continues to experience a surge in customer demand for grocery delivery and pickup.
The company said it has accelerated its launches with retailers since the start of the year and now partners with more than 400 national, regional and local retailers across more than 30,000 stores in the U.S. and Canada. In addition to groceries and everyday goods, the company has also expanded its offering over the last year to include alcohol and prescription delivery and pickup services.
As Instacart looks ahead, it expects to deploy the new capital in a number of ways, including: continuing to support its growing shopper community with new services and features; further investing in key businesses such as Instacart advertising and Instacart enterprise; and further scaling its operational and technical teams to help meet the increased customer demand for grocery delivery and pickup.
“COVID-19 created a massive shift for the grocery industry and forever changed how people view the necessity of on-demand services. Overnight, Instacart became an essential service for millions of families across North America and our teams have worked incredibly hard to safely serve customers and shoppers during this time of need. We have ambitious plans for the future and this new investment enables us to deepen our support for our shoppers and partners, further fund strategic initiatives such as our advertising and enterprise businesses, and continue to deliver exceptional experiences for customers. This pandemic has fundamentally reshaped the way people think about grocery and e-commerce, and we’re proud to have Instacart continue to play an important role in people’s lives now and long after this crisis subsides,” said Apoorva Mehta, founder and CEO of Instacart.