Instacart announced a new investment round Tuesday which values the fast-growing grocery delivery startup at $39 billion -- more than double the valuation of just five months earlier.

The California startup said the 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.

"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.

"This past year ushered in a new normal, changing the way people shop for groceries and goods. While grocery is the world's largest retail category with annual spend of $1.3 trillion in North America alone, it's still in the early stages of its digital transformation."

Instacart said 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 the research firm GlobalData said Instacart has been well-positioned for growth during the pandemic.

"The pandemic has been extremely advantageous for Instacart. The rise of online sales has forced many traditional retailers to expand their digital presence and to find new ways of getting products to customers buying remotely," Saunders said in a research note.

"For many, Instacart has been the ideal partner as the platform provides a solution that can be implemented quickly and without vast amounts of capital expenditure."

In October, Instacart raised $200 million in a funding round that valued it at $17.7 billion.

Related Links
Satellite-based Internet technologies

Tweet

Thanks for being here; We need your help. The Space Media Network continues to grow but revenues have never been harder to maintain. With the rise of Ad Blockers, and Facebook - our traditional revenue sources via quality network advertising continues to decline. And unlike so many other news sites, we don't have a paywall - with those annoying usernames and passwords. Our news coverage takes time and effort to publish 365 days a year. If you find our news sites informative and useful then please consider becoming a regular supporter or for now make a one off contribution.
SpaceMediaNetwork Contributor $5 Billed Once credit card or paypal		SpaceMediaNetwork Monthly Supporter $5 Billed Monthly paypal only

TikTok agrees $92 mn deal to settle US privacy lawsuits
San Francisco (AFP) Feb 26, 2021
TikTok has agreed to pay $92 million in a deal to settle a cluster of US class-action lawsuits accusing the video-snippet sharing platform of invading the privacy of young users. A legal filing Friday in federal court in the state of Illinois urged a judge to approve the settlement, which includes TikTok being more transparent about data gathering and better training employees about user privacy. The litigation combined 21 class-action cases taking aim at TikTok and its China-based parent compan ... read more