Total amount raised
$2.64 Billion
Latest funding date
9/1/2023
Location
Instacart has successfully navigated 10 funding rounds, with its latest being a September 2023 IPO on Nasdaq and a USD 175 million private placement with PepsiCo. The company is backed by 44 investors, including recent contributors Cogito Capital and Unanimous Capital.
Instacart's journey through these funding rounds highlights its growth and the confidence investors have in its innovative grocery delivery platform. Keep reading to explore the intricacies of Instacart's fundraising journey and the investors backing this transformative service.
What Is Instacart?
Instacart, headquartered in San Francisco, California, is a leading online grocery platform that offers same-day delivery and pickup services. The company operates in multiple locations, including Toronto and New York City, and supports a flexible work environment.
Founded by Apoorva Mehta, Instacart has grown significantly, employing between 1001 and 5000 people. The company is known for its innovative approach to grocery delivery, partnering with retail stores to bring groceries to customers' doors in as little as 30 minutes.
How Much Funding Has Instacart Raised?
- Post-IPO Equity (Series A redeemable convertible preferred stock, private placement)
- Amount Raised: USD 175,000,000 (5,833,333 shares of Series A redeemable convertible preferred stock at USD 30.00, sold immediately after the IPO closing)
- Date: September 2023
- Lead Investors: PepsiCo, Inc.
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: The 10-Q states the private placement proceeds, with the IPO proceeds, were entirely used to satisfy tax withholding and remittance obligations on equity awards that settled or vested in connection with the IPO.
- IPO
- Amount Raised: USD 423,000,000 (gross IPO proceeds to Maplebear Inc. on 14,100,000 shares at USD 30.00, per the Q3 2023 10-Q; net proceeds approximately USD 392 million; the selling stockholders' USD 237 million not counted)
- Date: September 2023
- Lead Investors: Goldman Sachs & Co. LLC, J.P. Morgan (representatives of the underwriters)
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: The 10-Q states the net IPO proceeds were entirely used to satisfy tax withholding and remittance obligations on equity awards that settled or vested in connection with the IPO.
- Private Equity Round
- Amount Raised: USD 232,000,000
- Date: November 2021
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To support growth and operational needs.
- Secondary Market Round
- Date: September 2021
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To provide liquidity to existing shareholders.
- Private Equity Round
- Amount Raised: USD 265,000,000
- Date: March 2021
- Lead Investors: Andreessen Horowitz, D1 Capital Partners, Fidelity, Sequoia Capital, T. Rowe Price
- Valuation at Round: USD 39,000,000,000
- Motivation Behind the Round: To hire more employees and expand business lines.
- Private Equity Round
- Amount Raised: USD 200,000,000
- Date: October 2020
- Lead Investors: D1 Capital Partners, Valiant Peregrine Fund
- Valuation at Round: USD 17,700,000,000
- Motivation Behind the Round: To capitalize on the surge in demand for grocery delivery services.
- Private Equity Round
- Amount Raised: USD 100,000,000
- Date: July 2020
- Lead Investors: T. Rowe Price
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To support operational needs and growth.
- Series Unknown Round
- Amount Raised: USD 225,000,000
- Date: June 2020
- Lead Investors: DST Global, General Catalyst
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To expand and enhance service capabilities.
- Secondary Market Round
- Date: September 2019
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To provide liquidity to existing shareholders.
- Series F Round
- Amount Raised: USD 271,000,000
- Date: November 2018
- Lead Investors: Tiger Global Management
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To support growth and expansion efforts.
- Series F Round
- Amount Raised: USD 600,000,000
- Date: October 2018
- Lead Investors: D1 Capital Partners
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To enhance service offerings and expand market reach.
- Series E Round
- Amount Raised: USD 150,000,000
- Date: April 2018
- Lead Investors: Coatue
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To support operational growth and market expansion.
Total Amount Raised: USD 2,641,000,000. Last Private Valuation: USD 39,000,000,000 (March 2021 round). Two secondary-market rows (September 2019, September 2021) carry no amount and are not company raises.
Key Investors
- PepsiCo
- Details: PepsiCo, Inc. bought USD 175 million of Instacart's Series A redeemable convertible preferred stock in a private placement that closed immediately after the September 2023 IPO.
- Investment Focus Areas: Not publicly disclosed.
- Notable Investments: Not publicly disclosed.
- Andreessen Horowitz
- Details: Andreessen Horowitz is a venture capital firm that invests in early-stage and growth-stage technology companies. They are known for their significant influence in the tech industry.
- Investment Focus Areas: Technology, software, consumer, enterprise, bio/healthcare, crypto.
- Notable Investments: Facebook, Airbnb, Slack.
- Sequoia Capital
- Details: Sequoia Capital is a venture capital firm that has funded many successful companies. They have a strong presence in the tech and healthcare sectors.
- Investment Focus Areas: Technology, healthcare, consumer, financial services.
- Notable Investments: Apple, Google, Oracle.
- D1 Capital Partners
- Details: D1 Capital Partners is an investment firm that operates in both public and private markets. They focus on long-term investments.
- Investment Focus Areas: Technology, healthcare, industrials, consumer.
- Notable Investments: Stripe, Robinhood, SpaceX.
- Fidelity
- Details: Fidelity is a multinational financial services corporation. They manage a large portfolio of investments across various sectors.
- Investment Focus Areas: Technology, healthcare, financial services, consumer.
- Notable Investments: Tesla, Amazon, Alphabet.
- T. Rowe Price
- Details: T. Rowe Price is a global investment management firm. They offer a range of mutual funds and advisory services.
- Investment Focus Areas: Technology, healthcare, financial services, consumer.
- Notable Investments: Amazon, Facebook, Google.
What's Next for Instacart?
Instacart stands at the cusp of significant growth opportunities. The company is poised to expand its business lines, including advertising and enterprise software for retailers. This expansion, coupled with the ongoing surge in online grocery shopping, positions Instacart to capture a larger market share.
Instacart, legally Maplebear Inc., completed its IPO in September 2023 and trades on Nasdaq as CART. The net IPO and USD 175 million private placement proceeds went entirely to tax withholding and remittance obligations on equity awards. However, challenges such as maintaining growth post-pandemic and navigating competition in the delivery service market remain.
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