Buys all outstanding shares of InstaShop in $360 million deal
Berlin-based Delivery Hero SE has announced that it has acquired InstaShop, a leading online grocery marketplace in the Middle East and North Africa.
Through this acquisition, Delivery Hero continues to complement its position in grocery delivery and emphasizes the importance of "q-commerce" or e-commerce revolving around quick deliveries.
Delivery Hero has acquired all of the outstanding shares of InstaShop based on a valuation of $360 million.
The initial purchase price amounts to approximately $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.
John Tsioris, CEO and Co-Founder of InstaShop
InstaShop was launched in June 2015 and is based in Dubai. The company generated approximately $300 million GMV on a Q2 2020 annualized basis, up 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.
Niklas Östberg, CEO and Co-Founder of Delivery Hero
InstaShop will continue to operate as an independent brand under the current leadership and is a complementary fit next to Delivery Hero’s current quick commerce strategy in the region. InstaShop’s business model has proven to be rapidly scalable and economically successful.
Meanwhile, Delivery Hero release half yearly results for 2020 with revenues increasing significantly by 93.7% on a year-on-year basis to $ 1.35 billion.