Instacart has raised $200 million as part of a new financing round led by existing investors Valiant Peregrine Fund and D1 Capital Partners, bringing its valuation to $17.7 billion.

The investment comes as consumer demand for its online grocery delivery and pickup services continues to grow and the company expands its marketplace with new and existing retail partners.

Instacart has continued to partner with new retailers over the last year, and now partners with more than 500 retailers and delivers from nearly 40,000 store locations across the US and Canada.

The company expects to deploy the new capital in new features and tools to enhance the customer experience, continued investment in Instacart Enterprise to support retailers' end-to-end e-commerce needs, and further investment in Instacart Ads to help connect brands of all sizes to customers shopping online.

Founder and chief executive Apoorva Mehta commented: "I'm incredibly proud of our team's work to scale our business this past year and rise to meet the unprecedented consumer demand and growth.

"Going forward, our teams remain relentlessly focused on building the absolute best online grocery shopping experience while partnering with iconic retailers to offer more selection and value to customers."

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