Mar 2, 2021 - Economy

Instacart raises $265 million as grocers score big VC deals

Illustration of a grocery cart with the Instacart app icon inside.

Illustration: Brendan Lynch/Axios

Instacart, a San Francisco-based grocery delivery company, raised $265 million in new funding from existing investors at a $39 billion valuation.

Why it matters: Big VC deals for grocery delivery aren't just a North America thing. Within the past 24 hours we learned: Rohik, the Instacart of Eastern Europe, bagged €190 million; Flink, a German grocery deliverer that utilizes "dark stores," got seeded with $52 million; and Crisp, an Amsterdam-based online grocer focused on fresh produce, added €30 million.

Instacart backers include Andreessen Horowitz, Sequoia Capital, D1 Capital Partners, Fidelity and T. Rowe Price.

The bottom line: This feels like a pre-IPO round, particularly given that Instacart recently added a pair of independent directors. But so did a $200 million injection last fall at a $17.7 billion valuation. And the $325 million deal last summer at a $13.8 billion valuation.

  • At the very least, it gives Instacart more firepower as deep-pocketed rivals like DoorDash encroach on grocery and as Instacart expands into areas like alcohol and non-food retail delivery.
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