Instacart wins $271 million in new funding in November: source

(Reuters) - Grocery delivery startup Instacart raised an extra $271 million in November from investors including U.S. hedge fund Tiger Global Management, bringing its latest round of fund raising to $871 million, a source familiar with the matter told Reuters.

The San-Francisco-based startup announced last month it had raised $600 million in a new round led by D1 Capital, the brainchild of former Viking Global Investors chief investment officer Daniel Sundheim.

The additional $271 million came as a result of interest afterwards from a handful of other funds including Tiger Global, and existing Instacart investors Coatue Management and Valiant Capital, the source said, adding the deal had been filed in Delaware earlier this month.

Instacart has now raised a total of $1.87 billion, valuing the company at $7.87 billion, the source said.

The source could not confirm the break down of the stakes now held by each of the investors.

Tiger Global, Valiant and Coatue declined to comment.

Instacart, founded by a former Amazon employee in 2012, has been steadily growing in size and customer base as retailers including Walmart, Aldi Inc [ALDIEI.UL] and Kroger Co invest heavily in delivering Americans’ groceries direct to their doorstep.

The startup’s app allows shoppers to order groceries from retailers that are delivered on the same day. The company makes money through delivery fees, promotions and coupon deals it has with number of brands.

Tiger Global’s best known investments include ride-sharing app Uber and Indian e-commerce site and Amazon competitor Flipkart, which was bought by Walmart Inc earlier this year.

Reporting by Uday Sampath in Bengaluru; editing by Patrick Graham