Delivery Hero acquires InstaShop for $360M to rev up delivery business

• Despite the acquisition, InstaShop will continue to operate as an independent brand under the current leadership.
• Plan is to launch in new markets and invest in further growth.

Dubai: Delivery Hero SE, Berlin-listed online food-delivery service, has acquired Dubai-based online grocery platform InstaShop for $360 million, on a cash and debt-free basis.  

John Tsioris, CEO and Founder of InstaShop, said that the partnership is a great opportunity for them to continue to grow their business and put the group’s expertise to use.

“I really enjoyed working with Delivery Hero on this deal and am thrilled to continue to further expand the reach and quality of our service at InstaShop. Delivery Hero is a network-driven by ambitious founders and entrepreneurs just like ourselves, and we are proud to become part of this family,” he said.

InstaShop was launched in June 2015 and generates approximately $300 million gross merchandise value on a second-quarter annualised basis, up 330% year-on-year, and a positive EBITDA margin.

With Delivery Hero’s support, the plan is to launch in new markets and invest in further growth.

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 UAE, Qatar, Bahrain, Egypt, and Lebanon.

Despite the acquisition, InstaShop will continue to operate as an independent brand under the current leadership.

“The InstaShop team embodies our values and brings a strong vision and capabilities. As a leading player in the grocery segment, InstaShop has built a service that customers love, and their expertise is a great addition to our quick commerce expansion. Together, we will continue to invest to drive the future of delivery by pushing the standards for speed and convenience,” Niklas Ostberg, CEO and Co-Founder of Delivery Hero, said.