Instacart confirms $220M investment

Instacart officially announced that it has closed a $220 million Series C round, pushing total funding past $275 million for the fast-growing San Francisco-based startup.

Re/code originally reported the financing round, which was led by Kleiner Perkins Caufield & Byers (KPCB) late last month. Other investors in the Series C round include Comcast Ventures, Dragoneer Investment Group, Thrive Capital, Valiant Capital and previous investors Andreessen Horowitz, Khosla Ventures and Sequoia.

The company will use the fresh funds to add more cities, expand its product offerings, and improve its service.

Instacart, which lets customers buy groceries online and have them delivered within one hour, had previously raised $44 million in June. At the time, it offered service in 10 cities, and has added five more metros since then. The company said its revenue grew by 10X last year and doubled from Q3 to Q4.

Instacart charges $3.99 for two-hour delivery, and $5.99 for one-hour delivery when orders of $35 or more are placed. Unlike Amazon Fresh, which operates its own grocery distribution facilities, Instacart employs more than 4,000 personal shoppers who hand-pick grocery items at established stores such as Whole Foods, Costco and Kroger.

Instacart faces competition from giants like Amazon and Google, as well as smaller startups like Postmates, WunWun, and FreshDirect. It employs more than 100 full-timers — not including the personal shoppers — is expected to hit $100 million in revenue this year.

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