When Amazon.com Inc. bought Whole Foods for $13.7 billion last year, anyone watching grocery-delivery upstart Instacart Inc. was just about ready to stick a fork in it. But the San Francisco-based startup maintained a more optimistic outlook. It said competition from Jeff Bezos’s e-commerce behemoth would actually help it grow.
Now, it looks like Instacart may have been right—or at least, the naysayers were wrong. On Tuesday, the company said it had raised $600 million in new funding, a capstone to a remarkable year. In the last eight months, the startup increased the number of grocery retailers on its platform by 50 percent to 300 and raised close to $1 billion from investors.
Instacart’s latest funding round values the company at $7.6 billion, a significant jump from a valuation of $4.35 billion six months ago. Hedge fund D1 Capital Partners, run by the former Viking Global Investors chief investment officer, Daniel Sundheim, led the round.
Apoorva Mehta, Instacart’s chief executive officer, said most of the company’s previous two cash injections—$200 million in February and $150 million in April—hasn’t been spent yet. Neverthe