Instacart's Latest Fundraise Delivers $17.7B Valuation

By Elise Hansen
Law360 is providing free access to its coronavirus coverage to make sure all members of the legal community have accurate information in this time of uncertainty and change. Use the form below to sign up for any of our weekly newsletters. Signing up for any of our section newsletters will opt you in to the weekly Coronavirus briefing.

Sign up for our California newsletter

You must correct or enter the following before you can sign up:

Select more newsletters to receive for free [+] Show less [-]

Thank You!



Law360 (October 8, 2020, 5:44 PM EDT) -- Instacart said Thursday it had raised $200 million from two investors, giving the company a $17.7 billion valuation as the coronavirus pandemic drives demand for its grocery delivery service.

Existing backers Valiant Peregrine Fund LP and D1 Capital Partners contributed the funds, which will go toward product development, supporting retailers' e-commerce operations and the company's ad business, Instacart Ads, the announcement said.

California-headquartered Instacart offers grocery delivery services and has also recently announced partnerships with retailers such as cosmetics chain Sephora and convenience store 7-Eleven. The pandemic has led to a spike in demand for delivery services, and Instacart now boasts partnerships with more than 500 retailers in the U.S. and Canada, the announcement said.

"COVID-19 has forever changed the way people shop for their groceries and goods and, as a result, Instacart has gone from a convenience to a lifeline for millions of people," the announcement said. "Today's investment comes as consumer demand for Instacart's service continues to grow and we continue to expand our marketplace with new and existing retail partners."

Valiant Peregrine Fund is a California-headquartered private equity fund, while D1 Capital Partners is a New York-based venture capital firm. D1 Capital's founder and chief investment officer, Daniel Sundheim, became an Instacart board member earlier this year, according to his LinkedIn profile.

"Our conviction in the strength of Instacart's management team and business model continues to grow as we've watched the company lead this important industry during a period of unprecedented growth," Sundheim said in a statement.

Instacart announced another fundraising round in June, when it raised $225 million from D1 Capital and investors DST Global and General Catalyst.

The company is facing some challenges to its business model, however: The District of Columbia's attorney general sued Instacart in late August, alleging the company charged deceptive service fees and stiffed D.C. on sales taxes. The case is currently playing out in D.C. court.

Representatives for Valiant Peregrine Fund and D1 Capital could not immediately be reached for comment.

--Additional reporting by Hailey Konnath. Editing by Alanna Weissman.

For a reprint of this article, please contact reprints@law360.com.

Hello! I'm Law360's automated support bot.

How can I help you today?

For example, you can type:
  • I forgot my password
  • I took a free trial but didn't get a verification email
  • How do I sign up for a newsletter?
Ask a question!