Mar 1, 2017

Instacart is raising a massive new funding round

Instacart CEO Apoorva Mehta(TechCrunch via Flickr CC)

Instacart is in advanced talks to raise around $400 million in new venture capital funding at a $3 billion valuation, Axios has learned from multiple sources. The on-demand grocery delivery company previously was valued at around $2 billion, after having raised more than $260 million. Word is that existing shareholder Sequoia Capital will lead the new deal.

This comes shortly after a recent dust-up over altered pay for delivery workers, which one source acknowledges was an unforced error, but not one that investors apparently believe will have negative long-term consequences. Part of that confidence may be that they seem to be valuing San Francisco-based Instacart mostly on its tight integration with retailers, rather than on its delivery model (or even its lucrative CPG partnerships). In fact, there is some talk that Instacart could someday cut the company-managed deliveries all together, allowing the retailers or third parties to handle last-mile.

No comment from either Instacart or Sequoia Capital.

Go deeper

Situational awareness

Photos: Jeff Kowalsky/AFP via Getty Images; Alex Wong/Getty Images

Catch up on today's biggest news:

  1. Bloomberg campaign says Tennessee vandalism "echoes language" from Bernie supporters
  2. Scoop: New White House personnel chief tells Cabinet liaisons to target Never Trumpers
  3. Trump misrepresents 2020 Russia briefing as Democratic "misinformation"
  4. Bernie Sanders takes aim at Bloomberg: "Trump will chew him up and spit him out"
  5. Nearly half of Republicans support pardoning Roger Stone
  6. Scoop: Lyft acquires cartop advertising startup Halo Cars

Sanders takes aim at Bloomberg: "Trump will chew him up and spit him out"

Photo: Mario Tama/Getty Images

Bernie Sanders told CBS "60 Minutes" that he was surprised by Mike Bloomberg's lackluster performance at Wednesday's Democratic debate.

What he's saying: "If that's what happened in a Democratic debate, you know, I think it's quite likely that Trump will chew him up and spit him out."

Scoop: Lyft acquires cartop advertising startup Halo Cars

Photo: Drew Angerer/Getty Images

Lyft has acquired Halo Cars, a small startup that lets ride-hailing drivers earn money via ad displays mounted atop their cars. Lyft confirmed the deal but declined to share any details.

Why it matters: Ride-hailing companies are increasingly eyeing additional ways to generate revenue, and Lyft rival Uber has been quietly testing a partnership with New York-based Cargo that gives it a cut of the advertising revenue, as I previously reported.