Instacart Continues to Experience Growth and Investor Approval
Founded in 2012 by entrepreneurs Apoorva Mehta, Brandon Leonardo, and Max Mullen, the startup company has since garnered over $2.4 billion in support of its online grocery business. The ecommerce platform built by the startup business now partners with almost 600 retailers and offers grocery pickup services from over 45,000 locations across the US and Canada.
"Sequoia has been a consistent investor in Instacart since 2013 when we formed our original partnership and the online grocery market was still in its infancy," Michael Moritz, Partner at Sequoia Capital, said. "Now, eight years later, Instacart, which has delivered groceries and goods for millions of customers across North America, is the category leader and fulfilling its role as a vital service for consumers…”
The startup business plans to use the funding from its latest round to bolster corporate staff numbers at the company and invest in various aspects of its marketplace and advertising divisions.
Driving Digital Grocery Sales as Quarantine Continues
Market research expects the global online grocery market to reach $663.33 billion by 2024. Last year, the pandemic caused a significant increase in ecommerce purchases across all industries, leading businesses like Amazon to realize record-breaking revenues. Instacart’s online platform proved to be ahead of its time in this regard, as the startup company offered a convenient way of obtaining groceries while remaining socially distanced.
"We were impressed with Instacart's ability to meet surging demand in 2020 and are excited to further invest," said Dan Sundheim, founder of D1 Capital Partners.
As the industry continues to expand, Instacart will face competition from competing companies in the business such as Postmates, Uber Eats, and DoorDash. DoorDash reported revenues of $970 million for Q4 2020 and boasts a market cap of $51.01 billion.
About the Author
James White is a Michigan State University graduate with a BS in Environmental Biology. He is interested in reporting emerging trends in technology, especially with regard to alternative energy and environmental conservation.