Instacart Making it Harder to Find a Date in the Produce Section
July 12, 2013
Instacart, a grocery-delivery service, has closed $8.5 million in Series A funding led by Sequoia Capital, with participation from Khosla Ventures, Canaan Partners, SVAngel and an individual investor. Headquartered in San Francisco, the company plans to use the investment to fund expansion, with a goal of being in at least 10 major cities across the U.S. by the end of 2014. In conjunction with the transaction, Sequoia’s Michael Moritz has joined Instacart’s Board of Directors.
Khosla Ventures and Canaan Partners were also participants in the company’s $2.3 million financing in October of last year. Instacart links users with personal shoppers who take orders using a mobile device and then deliver groceries to a user’s doorstep in as soon as one hour. The personal shoppers shop at Safeway, Trader Joe’s, Whole Foods and Costco, although Instacart is not affiliated with or sponsored by any of these companies. What sets the company apart is that it uses a crowdsourced model for its personal shoppers, thereby not needing warehouses or delivery trucks.
As the company grows, it seems that the grocery delivery space is growing as well. Multiple companies within the industry have landed deals just this year. Austin-based Greenling raised over $5 million in Series B funding this January, while Charlottesville, VA-based Retail Relay and Lafayette, CO-based Door to Door Organics each landed deals in April, grabbing over $8 million in funding and over $3 million in funding, respectively.