Online grocery delivery startup Instacart Inc. has raised a $400 million round of venture funding, said people familiar with the deal.
With the additional capital, the San Francisco-based company’s valuation has risen to $3.4 billion, said the people, who asked not to be identified because the matter isn’t public. The investment was led by Sequoia Capital, which had led an earlier round, the people said.
Instacart allows customers to shop through an app at local grocery stores. Orders are then picked off shelves and delivered by Instacart workers, who are a mix of part-time employees and independent contractors. Before the latest fundraising discussions, Instacart had been valued at $2 billion after a 2015 funding round.