On Thursday, San Francisco-based company Instacart announced its second giant investment of the year with $200 million in fresh financing. The decacorn’s valuation jumped to $17.7 billion since its last financing round four months ago, which totaled $225 million.
The additional capital comes about as consumer demand for the same-day grocery delivery service continues to remain high during the pandemic.
According to purchasing data gathered by Second Measure, the company has seen its share of the grocery delivery market grow to nearly 50 percent as of June.
“I’m incredibly proud of our team’s work to scale our business this past year and rise to meet the unprecedented consumer demand and growth,” founder and CEO Apoorva Mehta said in a statement.
The new financing will be used to further product development and introduce new tools and features intended to improve the customer experience. As the company continues to scale in order to meet demand, Instacart is on a massive hiring spree with over 80 open roles available across multiple departments.
The company is also looking to continue to expand its reach beyond the grocery delivery market by partnering with retailers in a variety of industries.
Instacart currently works with more than 500 retailers across the United States and Canada including Staples, Walmart, Costco and Petco. The company announced new partnerships with Sephora and 7-Eleven last month.
“Going forward, our teams remain relentlessly focused on building the absolute best online grocery shopping experience," Mehta said.
The round was led by existing investors Valiant Peregrine Fund and D1 Capital Partners.
