Instacart has raised a $200 million round at a valuation of $4.2 billion, Instacart has confirmed to PitchBook. The Series E financing was led by Coatue Management. (PitchBook previously reported Instacart was raising $250 million at an estimated valuation of $5 billion.)
The $4.2 billion valuation is a significant increase for the San Francisco-based company, which was valued at roughly $3.4 billion in March 2017 with a $413 million financing. Amazon's agreement to acquire Whole Foods in June called Instacart's value into question—Whole Foods had been one of Instacart's major customers, and Amazon has its own grocery delivery arm.
Amazon recently announced it would start delivery of Whole Foods products through Prime Now in four US cities, with plans to expand throughout the country as the year goes on. But even with such a major competitor, Instacart, founded in 2012, appears to be growing its business.
In December, news came out that Instacart had experienced a year-over-year gross revenue increase of 150%. The company also recently signed a same-day delivery agreement with Albertsons and is used by other grocers such as Kroger and Publix.
Prior to its current fundraise, the company had collected around $700 million in equity funding from investors including Sequoia and Andreessen Horowitz.