Instacart Raises $325 Million in Funding
San Francisco – July 15, 2020 – Cooley advised Instacart, the North American leader in online grocery, on its recent $325 million fundraising round. Instacart announced an initial $225 million investment in June as part of the financing round, which was led by DST Global and General Catalyst, with existing investor D1 Capital Partners participating. The company later expanded the round in July with an additional $100 million investment from the funds and accounts advised by T. Rowe Price Associates. This recent fundraising round increases the company's valuation to $13.8 billion, up from $7.87 billion at the close of its previous round in 2018. Cooley partners Bradley Libuit, Rachel Proffitt and Jon Avina led the team advising Instacart.
The investments come as Instacart experiences a surge in customer demand across North America amid the COVID-19 pandemic. The new capital will enable the company to deepen its support for its shopper community, further fund strategic business initiatives like Instacart Advertising and Instacart Enterprise and continue to scale its technology and operations to meet community needs.
“COVID-19 created a massive shift for the grocery industry and forever changed how people view the necessity of on-demand services,” Apoorva Mehta, Instacart founder and CEO, said in a statement last month. “Overnight, Instacart became an essential service for millions of families across North America and our teams have worked incredibly hard to safely serve customers and shoppers during this time of need.”
Instacart is accessible to more than 85% of households in the US, across all 50 states, and more than 70% of households in Canada. The company partners with more than 400 retailers and delivers from more than 30,000 grocery stores across 5,500 cities in the US and Canada. In addition to groceries and everyday essentials, Instacart has also expanded its offering over the last year to include alcohol and prescription delivery and pickup services
Cooley previously advised Instacart on its $871 million Series F financing round in 2018 and its $350 million Series E financing earlier that year.
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