Talabat has acquired InstaShop from Delivery Hero for $32 million, the company announced today. The price is largely symbolic, as the deal is part of an internal restructuring within Delivery Hero. The acquisition was first disclosed last year when Delivery Hero announced plans to take Talabat public on the Dubai Financial Market. The transaction was completed last month, following Talabat’s listing on the DFM.
InstaShop, founded in June 2015 and headquartered in Dubai, is a leading online grocery delivery marketplace operating in the UAE and Egypt. The platform connects users with vendors for groceries, pharmacy items, beauty essentials, and personal care products. Delivery Hero acquired the company for over $360 million in August 2020.
With the latest deal, InstaShop becomes a wholly-owned subsidiary of Talabat but will continue to operate as an independent brand within Talabat’s Grocery and Retail vertical. The move significantly strengthens Talabat’s position in the grocery and retail delivery segment, with pro forma GMV for this vertical now surpassing $2.5 billion for 2024.
InstaShop achieved strong growth in 2024, reaching $631 million in GMV, a 16% increase from $545 million in the previous year. This represented approximately 8% of Talabat’s total GMV for 2024, with the company maintaining positive and improving EBITDA margins.
Tomaso Rodriguez, CEO of Talabat, stated that the acquisition “supports and complements our strategy to grow our Grocery and Retail offering” and will enhance customer experience while providing greater choice and convenience.
Nikola Cabarkapa, CEO of InstaShop, added, “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.”
The transaction is expected to unlock operational synergies including expanded partner networks through cross-listing opportunities, optimized operations via fleet synergies, shared resources, and improved product and technology integration.
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