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San Francisco, California, U.S.

Industry: Private

Region: US 🇺🇸

Founded: 2012

Expected Valuation: $13 billi​on

IPO Date: To be Determined

Instacart Financial, Inc.

Key Company Facts

HeadquartersSan Francisco, US
IndustryFintech/Online Banking
FoundersApoorva Mehta, Max Mullen, Brandon Leonardo
Number of employees3,000 (2022)
IPO Date2023 (expected)
Number of investors37
Total funding$2.9 billion USD
Number of account holders13.7 million
Valuation estimate$13 billion USD

Company Overview & History

Instacart is a prominent online grocery delivery service that connects customers with personal shoppers who fulfill their orders from local stores.

The company was founded in 2012 by Apoorva Mehta, Max Mullen, and Brandon Leonardo. Initially launched in San Francisco, Instacart quickly expanded its services to major cities across the United States and Canada.

Today, it operates in thousands of cities and serves millions of customers, making it one of the leading players in the online grocery delivery industry.

Financial Performance

Instacart has experienced substantial growth and success since its inception. The company’s financial performance has been impressive, with steady revenue growth over the years.

It has attracted significant investments from venture capitalists, raising billions of dollars to fuel its expansion and innovation. Additionally, Instacart has entered into strategic partnerships with major grocery chains, further solidifying its position in the market.


YearRevenue (USD)
2013$10 million
2014$75 million
2015$120 million
2016$185 million
2017$300 million
2018$525 million
2019$735 million
2020$1500 million
2021$1800 million
2022$2500 million

Business Model

Instacart operates on a unique business model that bridges the gap between customers, personal shoppers, and partner stores. Customers can place their grocery orders through the Instacart app or website, specifying their desired items and preferred stores.

Personal shoppers receive these orders and shop for the requested items at local partner stores. Once the shopping is complete, the personal shopper delivers the order directly to the customer’s doorstep.

Instacart generates revenue through various channels, including delivery fees, service fees, and partnerships with grocery retailers.

Estimated Valuation

YearValuation (USD)
2016$2 billion
2017$3.4 billion
2018$7.6 billion
2020$13.7 billion
2021$39 billion
2022$24 billion

Risk Factors

While Instacart has achieved remarkable success, it also faces several risk factors that could impact its future prospects. One significant risk is intense competition in the online grocery delivery market.

Competitors such as Amazon Fresh and Walmart Grocery pose a threat, as they have the resources and infrastructure to scale their operations rapidly. Instacart also relies on the availability of personal shoppers, and any shortage or issues with the quality of service could negatively affect customer satisfaction and retention.

Additionally, changing consumer preferences and market dynamics may require Instacart to adapt and innovate continually to stay ahead of the competition.

Market Opportunity

Instacart operates in a market with significant growth potential. The COVID-19 pandemic has accelerated the shift towards online grocery shopping, with more consumers embracing the convenience and safety of having groceries delivered to their homes. This trend is expected to continue even as the pandemic recedes.

Furthermore, the online grocery delivery market is still relatively untapped, with a large portion of consumers yet to adopt this mode of shopping. Instacart can seize this opportunity by expanding its services to new geographical regions, partnering with additional grocery chains, and enhancing its technological capabilities to provide a seamless and efficient shopping experience.


  • Shipt
  • Amazon Fresh
  • Walmart Grocery Delivery
  • Postmates
  • FreshDirect
  • Google Express
  • Peapod
  • InstaShop