Talabat Holding plc, an on-demand online ordering and delivery platform in the MENA region, has announced the successful acquisition of InstaShop Ltd (instashop), an online grocery delivery marketplace in MENA, from Delivery Hero SE for $32 million, the company said on Thursday.
With this acquisition, instashop becomes a wholly-owned subsidiary of talabat, strengthening its grocery and retail offering and expanding its partner network across the MENA region.
Following the acquisition, talabat’s pro forma grocery and retail gross merchandise value (GMV) for 2024 surpasses $2.5 billion.
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The sale and purchase agreement, first announced in September 2024, was fully funded through talabat’s internal cash reserves.
Following the acquisition, instashop will continue to operate as an independent brand within talabat’s grocery and retail vertical.
What is instashop?
Founded in June 2015 and headquartered in Dubai, instashop is a leading online marketplace that connects users with vendors, streamlining the purchase process and providing the necessary logistical capabilities to meet fast delivery expectations of customers.
Specializing in the grocery and retail sectors across the UAE and Egypt, instashop offers a wide range of products, including groceries, pharmacy items, beauty essentials, and other personal care products.
Strong growth
In 2024, instashop achieved strong growth, reaching $631 million in GMV, a 16 percent increase from $545 million in the prior year and equivalent to 8 percent of talabat’s 2024 GMV, with positive and improving EBITDA margins.
“We are thrilled to welcome instashop into the talabat family. The acquisition supports and complements our strategy to grow our grocery and retail offering and is a testament to our commitment to enhancing customer experience and providing customers with even greater choice and convenience,” said talabat CEO Tomaso Rodriguez.
“By integrating instashop’s innovative platform into our operations, we aim to create a more seamless and efficient delivery experience for our customers across the UAE and Egypt whilst also driving further product and technology synergies across our business,” he added.
Nikola Cabarkapa, CEO of instashop, commented: “Joining forces with talabat marks an exciting new chapter for instashop. We have always been dedicated to connecting our users with their favourite local stores, and now, with talabat’s support, we can amplify our impact even further. This partnership will enable us to leverage talabat’s extensive network and operational expertise, allowing us to enhance our service delivery and continue our mission of providing exceptional convenience to our customers.”
