Delivery startup Instacart valued at $39 bn

The California startup into grocery business Instacart has valued more than doubled its valuation to $39 billion with a $265 million fundraising round from existing investors, this is possible with the ongoing coronavirus pandemic has highlighted the value of its service which is partnered with hundreds of retailers in the United States and Canada.

The latest funding round of $265 million comes from existing investors including Andreessen Horowitz, Sequoia Capital, D1 Capital Partners, Fidelity Management & Research Company LLC, and T. Rowe Price Associates. It was valued at $17.8 billion in November following the closing of a previous funding round. Instacart is now the second-largest US-based unicorn, behind Elon Musk's SpaceX that is valued at $74 billion, as per the PitchBook.

Today's fundraising reflects the strength of Instacart's business, the growth our teams have delivered and the incredible opportunity ahead," said chief financial officer Nick Giovanni. As per Instacart, it expects to boost the number of employees by some 50 percent this year and invest in services such as the Instacart Marketplace, which connects customers and retailers, as well as in its platforms for advertising and for grocery retailers to boost their own e-commerce.

Instacart currently works with some 600 national, regional and local retailers representing 45,000 stores across North American reaching more than 85 percent of US households and 70 percent of Canadians. Neil Saunders of GlobalData Research said Instacart has been well-positioned for growth during the pandemic.