Online grocery delivery company Instacart is in talks to raise new funding, according to a report.
The privately-owned San Francisco-based business is aiming to raise several hundred million dollars from new and current investors, sources close to the situation told The Information Tuesday.
The deal would reportedly raise Instacart's valuation to between $12 billion and $14 billion, at least a 50 percent increase over the company's valuation during its last round of fundraising in 2018.
Demand for food delivery has significantly surged with the coronavirus-related lockdowns. Online grocery platforms have struggled to keep up with demand leading to the increased wait time for delivery.
The need for faster food delivery led Instacart to hire more employees recently, with stay-at-home orders still in place in many parts of the country.
Instacart's reported financing comes on the heels of a possible merger between two of the biggest meal delivery services in the country -- Uber and GrubHub.
An Instacart spokesperson told FOX Business in a statement that the company “doesn’t comment on rumors or speculation, and remains focused on serving as a lifeline for customers and shoppers in the wake of COVID-19.”