Grocery delivery service Instacart, announced Feb. 11 it had raised $200 million in fresh funding at a new valuation of $4.2 billion. The investment and valuation boost come at the perfect time to compete against Amazon, which began offering two-hour grocery delivery services from Whole Foods to its Prime customers last week.
The Series E financing was led by Coatue Management and added Glade Brook Capital Partners to the team. Instacart was previously backed by Sequoia Capital, Andreessen Horowitz and Whole Foods Market, among other investors. With Amazon’s acquisition of Whole Foods, Instacart faced uncertainty. In 2016, Instacart signed a multi-year deal to be the exclusive delivery provider for most Whole Foods goods.
Instacart has recently partnered with large retailers such as Albertsons, Target and Costco and has 200 same-day delivery other partnerships. Last year, Instacart raised $400 million and was valued at $3.4 billion.