Delivery Hero¬†has acquired¬†InstaShop, an online grocery marketplace in the Middle East and North Africa for $270 million, on a valuation of USD 360 million.
The acquisition of InstaShop marks the next step in Delivery Hero‚Äôs quest to pioneer q-commerce ‚Äì the next generation of e-commerce and will help it complement its position in grocery delivery.
According to Niklas √ñstberg, CEO and Co-Founder of Delivery Hero, ‚ÄúI‚Äôm delighted to welcome InstaShop to the Delivery Hero family. The InstaShop team embodies our values and brings a strong vision and capabilities.‚Äù
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‚Äôs support, the plan is to launch new markets and invest into further growth.
InstaShop‚Äôs 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.
‚ÄúThe partnership with Delivery Hero is a great opportunity for us to continue to grow our business and put the group‚Äôs expertise to use,‚Äù said John Tsioris, CEO and Co-Founder of InstaShop. ‚ÄúDelivery Hero is a network driven by ambitious founders and entrepreneurs just like ourselves, and we are proud to become part of this family.
InstaShop will continue to operate as an independent brand under the current leadership and is a complementary fit next to Delivery Hero‚Äôs current quick commerce strategy in the region. InstaShop‚Äôs business model has proven to be rapidly scalable and economically successful. While InstaShop‚Äôs immediate focus lies on driving growth within its current geographies, joining Delivery Hero also opens up future complementary opportunities of expanding its footprint globally.