Grocery delivery firm Instacart has raised US $200 million in a new funding round led by Coatue Management, as well as Glade Brook Capital Partners and existing investors.
The new funding values Instacart at US $4.2 billion and comes less than a year after the company raised US $400 million at a US $3.4 billion valuation. Instacart has till now raised US $900 million in total.
The money will be used to fuel its rivalry against Amazon, which is expanding its online grocery delivery service Fresh and building out new programs through its retailer Whole Foods.
Instacart makes an app that allows shoppers to order groceries that are delivered to their home the same day. The company makes money through delivery fees and also through promotions and coupon deals it has with a number of brands including General Mills Inc, Coca-Cola Co and Pepsico Inc.