Instacart, the grocery delivery company, said on Tuesday it raised an additional $ 265 million in a $ 39 billion funding, more than doubling its valuation for the second time of the year.
Andreessen Horowitz and Sequoia Capital, existing investors in Instacart, participated in the latest funding round for the 8-year-old startup. Over the last year, Instacart has raised two funding rounds totaling $ 525 million. It was previously valued at $ 17.7 billion.
The pandemic spurred the development of Instacart. Customers who want to avoid shopping at stores are using the company’s app-based grocery ordering services. Unpaid workers have also turned to contract economy jobs, such as Instacart shopping, to make money. Instacart currently has 500,000 shoppers working on contract.
Nick Giovanni, Instacart’s chief financial officer, said in a statement: “The past year has opened up a new normal, changing the way people shop for groceries and groceries.
Instacart has overcome criticism of its business model as it has expanded. Earlier this year, the dismissal of some workers from Instacart’s union led to charges of union sabotage. Grocery stores claim that the application fee of around 10% makes it difficult to make profits.
The company delivers from 600 retailers over 45,000 stores in the United States and Canada. It has expanded beyond the grocery store to include office supplies, sporting goods, prescription drugs and pet supplies from chains including Staples, Dick’s Sporting Goods, CVS and Petco.
Instacart said it plans to use the new capital to hire more employees and expand business lines including advertising for consumer packaged goods companies and enterprise software for retailers.
In a statement, Jeff Jordan, a partner of Andreessen Horowitz, said his company was impressed by the way Instacart has shown its resilience during the pandemic and “responding in time to 2020”.
The company has been named a candidate to go to the public. In January, it appointed Mr. Giovanni, formerly of Goldman Sachs, as CFO.