Talabat acquires InstaShop to strengthen MENA online grocery delivery market

MENA – In a strategic move, Talabat Holding plc, a dominant force in MENA’s on-demand ordering and delivery sector, has announced the acquisition of InstaShop Ltd, a major player in online grocery delivery across the region.

Talabat has finalized its acquisition of Instashop, securing 100% of Instashop’s share capital from Delivery Hero SE, effective from 25 February 2025 and now fully reflected in Talabat’s financial accounts.

With this strategic move, Instashop becomes a wholly-owned subsidiary of Talabat, significantly enhancing its Grocery and Retail offerings and broadening its partner network across the MENA region.

Following the acquisition, Talabat’s pro forma Grocery and Retail Gross Merchandise Volume for 2024 exceeded US$2.5 billion, a milestone that reinforces the company’s market leadership.

The deal is expected to generate considerable operational and technological synergies, with integration activities already in progress.

The sale and purchase agreement, initially announced in September 2024, was entirely financed through Talabat’s internal cash reserves with a total consideration of US$32 million.

Despite being acquired, Instashop will continue to operate as an independent brand within Talabat’s Grocery and Retail vertical.

Talabat is well known for its innovative technology, multi-vertical expertise, and strong local partnerships, all of which help its partners grow and make shopping easier for customers across the region.

Instashop, founded in June 2015 and headquartered in Dubai, has become a leading online marketplace that connects users with vendors, streamlining the purchase process and meeting the fast delivery expectations in the grocery and retail sectors of the UAE and Egypt.

In 2024, Instashop achieved robust growth with a GMV of US$631 million, a 16% increase over the previous year, which contributed 8% to Talabat’s overall 2024 GMV.

This performance aligns with Talabat’s strategy for accelerated expansion in the grocery and retail space.

Talabat’s CEO, Tomaso Rodriguez, expressed his enthusiasm for the acquisition, noting that it supports the company’s strategy to enhance customer experience and extend its reach in the market.

Instashop’s CEO, Nikola Cabarkapa, also indicated that joining forces with Talabat would enable the platform to leverage greater operational expertise and an expanded network to drive new growth opportunities.

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