🛒 UAE’s Talabat acquires instashop from Delivery Hero for $32 million

🛒 talabat has acquired 100% of InstaShop from Delivery Hero for $32 million, fully funded through its internal cash reserves.

Effective February 25, 2025, InstaShop will be consolidated into talabat’s financial accounts while continuing as an independent brand within talabat’s grocery and retail vertical.

Founded in 2015 by John Tsioris and Ioanna Angelidaki, InstaShop operates in the UAE, Bahrain, Egypt, Lebanon, and Qatar, connecting users with local vendors across groceries, pharmacy items, beauty, and personal care products.

• In 2024, it recorded a $631M GMV, growing 16% YoY and contributing 8% to talabat’s GMV. With its integration, talabat’s grocery and retail GMV now exceeds $2.5B.

⏪ Background

Originally acquired by Delivery Hero for $360M in 2020, instashop was its first grocery delivery acquisition in the region and remains one of the largest exits for a female co-founder in MENA.

talabat, was also acquired in 2016 by Delivery Hero, albeit indirectly as part of its acquisition of Rocket Internet SE's food delivery business.

🤔 Hang on, so Delivery Hero owned both companies?

The $32M sale price reflects corporate restructuring, not market value, as Delivery Hero prepared for talabat’s IPO in December 2024.

The move is part of a broader effort by Delivery Hero to streamline operations, optimise capital allocation, and shift focus towards profitability after years of aggressive global expansion.

The company has been reducing exposure to non-core markets and non-food verticals to strengthen its financial position.

💰 What’s with the price?

While the price is significantly lower than its previous valuation, the fairness of the transaction is contextual.

• For Delivery Hero, selling at capital value was a strategic decision to facilitate talabat’s IPO and restructure its business, aligning with standard corporate finance practices. It also allows the company to free up liquidity for debt management and reinvestment in its core food delivery operations.

• For talabat, the acquisition secures a strong market player at an advantageous price, strengthening its retail expansion.

Market-wise, this reflects restructuring priorities rather than a decline in InstaShop’s intrinsic value.

While investors might question the price drop, the deal aligns with Delivery Hero’s shift towards financial sustainability and talabat’s long-term growth strategy, making it a rational, if unusual, transaction.