Instacart’s valuation doubles to $39 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 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 has been preparing for a highly anticipated public debut, building out its C-suite and board over the past few months. Goldman Sachs will reportedly lead the IPO.

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.

Source link

Next Post

Shares of Rocket Companies, a large short target of hedge funds, jump more than 20%

The WallStreetBets forum on the Reddit Inc. website on a laptop computer and the logo on a smartphone arranged in Hastings-On-Hudson, New York, U.S., on Friday, Jan. 29, 2021. Tiffany Hagler-Geard | Bloomberg | Getty Images Shares of Rocket Companies rallied more than 20% Tuesday in a surprising move on […]
Major correction will surprise market speculators: CFRA's Sam Stovall

Subscribe US Now