Updated from 12:18 p.m. to include commentary from outside source in the eighth paragraph.
NEW YORK ( TheStreet) -- With Instacart announcing that it had secured another $220 million in a Series C round of funding, the grocery delivery company is actively trying to "bring the physical grocery store online." It appears for right now, investors are willing to believe.
"How do we bring the physical grocery store online?" Nilam Ganenthiran, head of business development and strategy at Instacart explained to TheStreet. "This new capital allows us to invest in technology and expand to new cities, all of which will allow us to bring more and more grocers and retailers online." The new infusion of capital will bolster Instacart's efforts towards shifting the way consumers purchase groceries, digitizing an industry that has long lagged in technology.
San Francisco-based Instacart has now raised funding to date of around $275 million, including this round. The round, which was led by Kleiner Perkins Caufield & Byers, also included Comcast Ventures, Dragoneer Investment Group, Thrive Capital, Valiant Capital and previous investors Andreessen Horowitz, Khosla Ventures, and Sequoia.
Instacart charges either a yearly membership of $99 a year for unlimited deliveries or $3.99 for two-hour delivery and $5.99 for one-hour delivery. It currently operates in 15 markets, but Ganenthiran predicts it will soon be serving customers in most of if not all major metros in America.
The funding will aid in that expansion as well as in hiring new talent to improve the algorithms that pair personal shoppers with consumers in the most efficient and effective way.