Retail delivery startup Instacart has raised $600m in its third round of funding this year. After this latest round, Instacart's valuation shot up from $4.35bn to $7bn. Ahead of this latest round, it raised $200m in February and a further $150m just two months later.
The firm's aggressive fundraising has commentators questioning whether the company's strategy is trying too hard to compete with Amazon who, with its purchase of Wholefoods in 2017, has also focused its on the grocery delivery market space.
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Following February's round of funding this year, Alex Wilhelm of Crunchbase News commented: "The bearish case, of course, is that the firm consumes too much cash chasing margins that Amazon will eventually grind to dust."
Instacart has established partnerships with 15,000 grocery stores in 4,000 US cities, and with this latest round of funding bringing the company's total funds raised to $1.6bn, it is showing no immediate signs of backing down.
The San Francisco Bay Area-based startup which was launched in 2012, delivers groceries to customers who order via a smartphone app. While the service is currently only available in the US, the company has announced plans to expand into the Canadian cities of Toronto and Vancouver.