Within five years of operations, Dubai-bred online shopping app Instashop has been acquired by one of the world’s leading food-ordering marketplaces, Delivery Hero for a whopping USD 360 million (AED 1.32b).
Delivery Hero acquires Instashop
Since its inception in 2015, Instashop paved the way for a simpler grocery shopping experience for residents, with foodstuffs, produce and a majority of what a supermarket offers delivered to one’s apartment within 45 minutes. The homegrown app rose to prominence partnering with retail giants like Al Maya’s, Carrefour, Union Coop, Spinneys and many more, catering to the digital generation.
Over the recent years, Instashop expanded into Qatar, Egypt, Greece, Bahrain and Lebanon, with over 1,500 shop-owners on board.
AED 1.3 billion acquisition
In a bid to solidify their presence in the Middle East’s quick commerce (q-commerce) market, Delivery Hero, one of the foremost online food ordering and delivery marketplaces boasting of brands such as Talabat, Food Panda and a line-up of multi-regional apps, acquired 100% of Instashop for $270 million (AED 991m), with the remaining $90 million (AED 330m) to be paid upon the app’s growth and profitability in the coming months.
“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 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 Östberg, CEO and Co-Founder of Delivery Hero
A Dubai success story
There’s no denying Dubai is a land of opportunity, playing host to some of the region’s top tech start-ups that have witnessed a staggering acquisition by multinationals of late. 2019 saw the ride-hailing app Careem sell for $3.1 billion (AED 11.3b) to Uber, followed by e-commerce mogul Amazon acquiring Souq.com for $580 million (Dh2.13 billion).
Instashop is the latest homegrown tech- startup to join the elite club.
“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.”John Tsioris, CEO and Co-Founder of InstaShop
(Featured photograph credit: Instashop)