Instacart is raising a fresh round of funds for its same-day grocery delivery service, valuing the San Francisco startup at nearly $2 billion, according to people familiar with the matter.
In its effort to raise about $200 million, the company is in discussions with venture-capital firm Kleiner Perkins, the people said. The discussions include existing investors such as Sequoia Capital, Khosla Ventures and Andreessen Horowitz, one of these people said.
The financing round hasn’t yet closed, these people said. Instacart was valued at about $400 million when it last raised $44 million in June.
The company makes same-day delivery of groceries from stores including Whole Foods and Costco, among other stores. Instacart sends couriers to the stores, purchases the goods and brings them to customers either at set times or within about an hour or two, charging between $3.99 and $5.99 for orders of at least $35.
Earlier today, TechCrunch reported Instacart’s fundraising ambitions.
Instacart is in a fiercely competitive market, taking on players like Amazon.com, Google, Safeway, Wal-Mart and others who offer same-day grocery delivery. Like Google, Instacart avoids some of the operating costs of those rivals because it doesn’t have to refrigerate or store the goods it delivers.
In recent months, Instacart has expanded to new cities and now operates in 15 metropolitan areas, according to its website.
Source: Wall Street Journal