ⓘ Featured image: John Tsioris, Co-founder, InstaShop
Dubai’s online grocery shopping marketplace InstaShop today announced that the company has been acquired by Delivery Hero, a global goliath in the food delivery space. The acquisition was done on InstaShop’s total base valuation of $360 million on a cash and debt-free basis.
This acquisition adds up to Delivery Hero’s aims to pioneer q-commerce as it joins forces with InstaShop, one of the largest e-grocery platforms in the Middle East & North Africa (MENA) region.
InstaShop was founded by John Tsioris and Ioanna Angelidaki in 2015. The duo will now bring their industry experience and a strong regional team to Delivery Hero. Commenting on the development, Tsioris in a statement said,
“The partnership with Delivery Hero is a great opportunity for us to continue to grow our 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.”
InstaShop claims to generate around $300 million GMV on a Q2 2020 annualised basis, up c. 330% year-on-year, and a positive EBITDA margin. And with Delivery Hero, the company is aiming to launch into new markets and invest for further growth.
The company 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.
Instashop was backed over the years by Jabbar Internet Group, one of the leading tech investors in the region, and VentureFriends, a European early-stage investor from Greece. The exit marks a record for the Greek tech ecosystem as well as a major exit for the MENA region and is expected to further support the growth of entrepreneurial tech activity in both regions.
Sharing his thoughts in the acquisition of InstaShop, Niklas Östberg, CEO and Co-founder of Delivery Hero, said,
“I’m delighted to welcome InstaShop to the Delivery Hero family. 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.”
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, leveraging synergies. InstaShop’s business model has proven to be rapidly scalable and economically successful. While InstaShop’s immediate focus lies on driving growth within its current geographies, joining Delivery Hero also opens up future complementary opportunities for expanding its footprint globally.