Berlin, 1st Sept 2020 – Delivery Hero announced that it has acquired InstaShop, a leading online grocery marketplace in the Middle East and North Africa region for $360 million.
The initial purchase price amounts to approximately USD 270 million and the size of the deferred component to the founding team is dependent on the growth and profitability of the business in the following years.
The acquisition of InstaShop marks the next step in Delivery Hero’s quest to pioneer q-commerce, the next generation of e-commerce.
InstaShop was launched in June 2015 and is based in Dubai. The company generates approximately USD 300 million GMV on a Q2 2020 annualized basis, up c. 330% year-on-year, and a positive EBITDA margin. With Delivery Hero’s support, the plan is to launch new markets and invest into further growth.
InstaShop’s business model is marketplace-based, it connects customers with vendors and facilitates the purchase, while the shops take care of the logistics. As a leading grocery delivery marketplace in the Middle East and North Africa, InstaShop offers scheduled as well as on-demand deliveries in 45 minutes on average. Partnering with approximately 1,500 vendors, the company operates in five countries: the United Arab Emirates, Qatar, Bahrain, Egypt and Lebanon.