Grocery delivery company Instacart said on Tuesday that it had raised another $ 265 million in funding, more than doubling its valuation for the second time in a year to $ 39 billion.
The current investors in Instacart are Andreessen Horowitz and Sequoia Capital, participating in the latest financing for the eight-year-old start-up. During the past year, Instacart has raised two rounds of funding totaling $ 525 million. It was previously valued at $ 17.7 billion.
The epidemic has supercharged the development of Instacart. Customers eager to avoid shopping in stores are using the company’s app-based grocery ordering service. Lead-off workers have turned to gig-economy jobs, like Instacart Shopping, to make money. Instacart now has 500,000 buyers who work on contracts.
“Over the past year, it has become a new normal, changing the way we shop for groceries and goods,” Instacart Chief Financial Officer Nick Giovanni said in a statement.
Instacart has criticized its business model as it expanded. Earlier this year, some Sangh activists of Instacart laid off Union busted. Grocery Stores Has said With the app fees being around 10 percent, it has become difficult to make profit.
The company distributes goods from 600 retailers in 45,000 stores in the United States and Canada. It has expanded beyond groceries 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 used the new funding to expand business lines, including advertising for consumer packaged goods companies and enterprise software for retailers and hiring more employees.
Jeff Jordan, a partner at Andreessen Horowitz, said in a statement that Instacart was impressed by the way he showed resilience in the epidemic and “got the moment of 2020.”
The company has been nominated as a candidate to go public. In January, it appointed Mr. Giovanni, former chairman of Goldman Sachs, as Chief Financial Officer.