Instacart on Wednesday announced it bagged $400 million in fresh funding to ramp up and improve its US-focused grocery delivery service.
The funding round led by Silicon Valley powerhouse Sequoia Capital involved mostly existing investors and valued Instacart at $3.4 billion, according to media reports.
"Our customers love Instacart because we make it easy to get delivery from their favorite local stores," the San Francisco-based startup said in an online post.
"We're going to use these resources to grow Instacart and to invest in making our product even better."
Instacart has been keeping a low profile since its last funding round about three years ago, and faces competition from younger internet-based services offering to deliver purchases from local shops as well as from established titans such as Amazon.
Instacart, one of the major players in the so-called "on demand" economy, makes money from marking up purchases, delivery fees, and advertising on its platform but is reported to have yet to post a profit. The startup was founded five years ago.
It has over 135 partners, including grocery chains H.E.B, Whole Foods Market, Costco, and Supervalu.
Alibaba's Jack Ma blames "outdated" law for fakes
Alibaba's founder Jack Ma urged stronger penalties for selling counterfeits Tuesday in an open letter arguing that "outdated and unrealistic" laws and regulations "encourage" selling and making of fake products.
Alibaba has come under fire in recent years for the ease at which knock-off goods are available to consumers on its online Taobao marketplace, which accounts for more than 90 percent … read more
