Instacart, the grocery supply firm, mentioned on Tuesday that it has raised one other $265 million in a funding that values it at $39 billion, greater than doubling its valuation for the second time in a yr.
Andreessen Horowitz and Sequoia Capital, that are present traders in Instacart, participated within the newest financing for the eight-year-old start-up. During the last yr, Instacart has raised two rounds of funding totaling $525 million. It was beforehand valued at $17.7 billion.
The pandemic has supercharged Instacart’s progress. Clients wanting to keep away from purchasing in shops are utilizing the corporate’s app-based grocery ordering service. Laid-off employees have additionally turned to gig-economy jobs, like Instacart purchasing, to make cash. Instacart now has 500,000 consumers who work on contract.
“This previous yr ushered in a brand new regular, altering the best way folks store for groceries and items,” Nick Giovanni, Instacart’s chief monetary officer, mentioned in a press release.
Instacart has weathered criticism of its enterprise mannequin because it has expanded. Earlier this yr, layoffs of a few of Instacart’s few unionized employees prompted accusations of union busting. Grocery shops have mentioned the app’s charges of round 10 p.c have made it troublesome to make a revenue.
The corporate delivers items from 600 retailers throughout 45,000 shops in america and Canada. It has expanded past groceries to incorporate workplace provides, sporting items, prescribed drugs and pet provides from chains together with Staples, Dick’s Sporting Items, CVS and Petco.
Instacart mentioned it deliberate to make use of the brand new funding to rent extra workers and to develop enterprise traces together with promoting for client packaged items firms and enterprise software program for retailers.
In a press release, Jeff Jordan, a companion at Andreessen Horowitz, mentioned his agency had been impressed by the best way Instacart had proven resilience within the pandemic and “met the second of 2020.”
The corporate has been named as a candidate to go public. In January, it appointed Mr. Giovanni, previously of Goldman Sachs, as chief monetary officer.