- Instacart is valued at $39 billion in a new funding round.
- It's the second time the company's valuation has doubled since the start of the Covid pandemic.
- According to Pitchbook, Instacart is now the second largest U.S.-based unicorn, behind SpaceX, Elon Musk's space start-up that's valued at $74 billion.
Instacart is being valued at $39 billion in a new round of funding that will add $265 million to the grocery delivery company's coffers. It's the second time Instacart's valuation has doubled since the start of the Covid-19 pandemic.
Less than five months ago, Instacart raised $200 million in a deal that valued it at $17.7 billion.
According to Pitchbook, Instacart is now the second largest U.S.-based unicorn, behind SpaceX, Elon Musk's space start-up that's valued at $74 billion.
The adoption of grocery delivery has skyrocketed during the pandemic as consumer demand for grocery and convenience delivery and pickup services surged. "This past year ushered in a new normal, changing the way people shop for groceries and goods," Instacart Chief Financial Officer Nick Giovanni said in a press release.
Technology IPOs have boomed during the last year, with the likes of Snowflake, Airbnb and C3.ai more than doubling on their debuts. Investor appetite for tech in private markets has been strong as well. Online payment processing company Stripe is reportedly raising funds at a valuation over $100 billion. UiPath closed a $750 million round, which valued the robotic process automation company at $35 billion ahead of an anticipated IPO this year.
Instacart's latest round was led by existing venture capital investors including Andreessen Horowitz, Sequoia and D1 Capital Partners, as well as existing institutional investors like Fidelity and T. Rowe Price.