Instacart has bagged significant amounts of fresh financing throughout the course of the pandemic. On Tuesday, the e-grocer announced its fourth giant investment of the last 12 months. The San Francisco-based decacorn raised $265 million as part of a new financing round led by Andreessen Horowitz.
Consumer demand for the grocery delivery service remains high as the pandemic presses on and vaccine distribution continues across the United States, and this has helped its valuation more than double to $39 billion since its last financing round of $200 million four months ago. In 2020, the company added more than 200 new retailers and 15,000 new store locations to its roster to cope with the increase in demand.
“Today’s fundraising reflects the strength of Instacart’s business, the growth our teams have delivered, as well as the incredible opportunity ahead,” Nick Giovanni, CFO of Instacart, said in a statement. “This past year ushered in a new normal for millions of people and changed the way we shop for groceries and goods.”
Instacart will invest the additional capital in rapidly expanding the size of its team as it continues to scale. The company is looking to increase its corporate headcount by 50 percent in the first half of 2021.
The e-grocer is now hiring for a dizzying amount of open tech positions across several departments at its San Francisco headquarters.
Since its last fundraise, Instacart has expanded its delivery and pick-up service across several new markets. Shoppers can now use the app to order everything from over-the-counter medications and office supplies to electronics, home decor and sports equipment.
Additional investors Sequoia Capital, D1 Capital Partners, Fidelity Management and T. Rowe Price Associates participated in the round.
