Talabat has announced the completion of its acquisition of the grocery platform InstaShop from its German parent company Delivery Hero in a $32 million deal, aimed at strengthening its portfolio in the grocery and retail sector in the UAE and Egypt.
In an official statement on Thursday, Talabat clarified that the sale and purchase agreement, which was first announced in September 2023, was fully financed through the company’s internal cash reserves.
Delivery Hero had previously acquired InstaShop in 2020 for $360 million as part of its expansion strategy in the Middle East and North Africa. The new deal comes as part of Delivery Hero’s corporate restructuring in September 2024, in preparation for Talabat’s initial public offering (IPO) in December of the same year.
Tomaso Rodriguez, CEO of Talabat, stated that integrating InstaShop will provide a smoother and more efficient delivery experience for customers in the UAE and Egypt, while also enhancing the integration of products and technology within the company’s operations.
Despite the acquisition, InstaShop will continue to operate as an independent brand, allowing partners to list their products on both platforms, thereby expanding their market reach.
Talabat also noted that InstaShop’s total market value saw a 16% year-on-year increase last year, reaching approximately $631 million, reflecting the platform’s strong performance in the digital grocery sector.
