Grocery delivery company Instacart is now valued at $7bn
Grocery delivery company, Instacart, announced that it has raised $600mn during its latest funding round, led by D1 Capital Partners.
The investment raises Instacart's valuation to $7.6bn, up 75% in six months.
Instacart said that it expects to use the new capital to further its expansion in the North America market, to boost awareness of Insacart at its retail partners’ stores and to recruit engineering and product development talent.
"The U.S. is nearly a $1 trillion grocery market, and last year we saw almost every major grocer in North America bring their delivery business online in a significant way,” said Apoorva Mehta, CEO and founder of Instacart.
“We believe we're in the very early stages of a massive shift in the way people buy groceries and we expect that one in five Americans will be shopping for their groceries online in the next five years.
“We're excited to partner with D1 Capital on this investment, which is a testament to the growth we've seen and our ambitious plans for the future."
- Walmart Canada invests $175mn to modernise stores and create omnichannel experience
- Aldi sales top £10bn for the first time in the UK and Ireland
- ‘No-deal’ Brexit could cost food retailers and their supply chain £9.3bn, says Barclays
- The October issue of FDF World is out now!
Instacart has partnerships with 300 national, regional, and local retailers including Kroger, Aldi, Sam’s Club, Albertsons and Walmart Canada.
Its grocery delivery service is available to more than 70% of US households and more than 50% of Canadian households.
In doing so, the San Francisco-based company says it serves more than 15,000 different grocery stores across 4,000 cities.
In September, Instacart announced it would open a second research and development headquarters in Toronto.
Dan Sundheim, Founder of D1 Capital Partners, added: "Grocery is the largest category within U.S. retail and it is also one of the least penetrated online.
The industry is at a tipping point and there will likely be a significant acceleration in the adoption of online ordering for grocery delivery over the next few years.
We believe that traditional retailers will lead the category online, as their brick and mortar stores are the most effective distribution centres for the fulfilment of online grocery orders.
"Instacart's world-class management and engineering team has proven to be a highly effective partner for grocers to serve customers in new ways."
Grupo Espinosa: 70 years of constant evolution
Founded in 1952, Grupo Espinosa has been relentlessly supporting the publishing industry with producing more than 100 million copies every year – whether its books, magazines, catalogues or single-order custom prints. No project is big or small for Grupo Espinosa, as the facility can scale up on demand and their turnaround times are highly competitive. Grupo Espinosa works with on-demand digital press or offset press, in paperback with glued softcover binding, PUR softcover binding, stitched paperback binding, binder’s board, hardcover, saddle stitched, Spiral or Wire-O. Equipped with the experience needed for a product to leave the plant ready for distribution, Grupo Espinosa delivers anywhere inside or outside Mexico. Traditionally starting off as a black and white printing press, Grupo Espinosa has experienced transformation first hand – from colour to digital offset printing. Currently, Grupo Espinosa is also looking at making capital investments into audio books to match with the increasing demand.
So how did a seemingly local operation in Latin America become a world-renowned printing facility trusted by hundreds of clients? As Rogelio Tirado, CFO of Grupo Espinosa for the last six years says “It all comes down to our market experience and our dedication to quality”. With nearly 70 years behind them, and located in Mexico City, Grupo Espinosa has two major locations – one spanning 75,000 square metres and the other about 45,000 square metres. Both locations are controlled by a single ERP (Enterprise Resource Planning) system ensuring speed, consistency and quality of work. Tirado says this isn’t their only competitive advantage. He adds “Our competitive advantage is the relationship we have with customers and the trust they put in us with their intellectual property”. Speaking of trust, global publishing giant Macmillan Education exclusively partners with Grupo Espinosa for their Latin America operations, as part of Macmillan’s decentralized hub strategy. Having a facility that offered the full spectrum of service – from storing digital content to printing and distributing – was one of the major requirements for Macmillan, and Grupo Espinosa was recognized as the leading printing hub for providing this 360 infrastructure. Another factor that has led to success for Grupo Espinosa is the absolute focus on quality and time. The staff are committed to providing the best quality in the best possible time, without causing wastage of resources. Sustainability is a huge factor playing into Grupo Espinosa’s operations, and they’ve created a healthy environment with the sustainable use of paper and energy resources as well as keeping their employees – most of them associated with the organisation for over 10 years – happy. He adds, “In order to be truly successful, you need to be good to the environment, employees, suppliers, and your customers. But most importantly, you need to be sustainable, you need to have proper working conditions, pay proper salaries, proper prices for paper, source the paper from sustainable sources, pay your taxes, basically be a good global corporate citizen and that's probably one of the biggest achievements that we have.”