Online grocery delivery service Instacart announced it has secured $220 million in Series C financing from investors, led by Kleiner Perkins Caufield & Byers. This brings the start-up company's total funding to about $275 million.
"We look for visionary entrepreneurs who are re-imagining big business opportunities—in Instacart, we found both," said Mary Meeker, general partner at KPCB, who will be a board observer for Instacart. "Many Americans spend hours per week grocery shopping. Combining its elegant app with on-demand delivery, Instacart allows consumers to save time—and discover new products—while shopping from their favorite local stores."
The money will be used primarily for category expansion, continued geographic growth and technology enhancements.
Other investors in the round of funding include Comcast Ventures, Dragoneer Investment Group, Thrive Capital, Valiant Capital and previous investors Andreessen Horowitz, Khosla Ventures and Sequoia.
Unique in the marketplace, Instacart differentiates itself through "personal shoppers" who shop for and deliver orders using their own transportation in as little as one hour. The idea is to work with local stores to help them expand their reach, rather than using inventory and warehouses.
The company grew revenue by more than 10 times in 2014, doubling revenue alone in just the fourth quarter. Last year it also signed partnerships with Whole Foods, Fairway Market and Fresh & Easy.
"Instacart has become the best friend of the U.S. supermarket industry—making it possible for them to have much closer ties and provide a bevy of new services to their customers. Instacart is helping supermarkets across the country take full advantage of the full power of broadband internet connectivity," said Michael Moritz, chairman of Sequoia and an Instacart board member.
Back in June, Instacart announced it had raised $44 million in venture capital.
Instacart is one of a growing list of companies, including Amazon.com (NASDAQ:AMZN) vying to provide same-day or one-hour delivery for groceries.
-See this Instacart press release
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