UAE's Talabat Acquires Instashop for $32 Million
UAE-based delivery service Talabat acquired the Dubai-based grocery platform Instashop from its German parent retailer Delivery Hero for $32 million.
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Talabat first announced the sales and purchase agreement in September last year, which was fully funded through the company's internal cash reserves.
After this transaction, Talabat's pro forma grocery and retail gross market value for 2024 increased to more than $2.5 billion.
In the same year, Instashop's gross market value increased 16 percent annually to $631 million.
Integration procedures are also in process, and the transaction will unlock operational and technology efficiencies for both companies.
In 2020, Delivery Hero acquired Instashop for $360 million because the company aimed to expand in North Africa and the Middle East.
Instashop will operate as an independent brand within Talabat's grocery and retail segment, which will allow crosslisting of partners to expand the companies' market reach.
Talabat was founded in Kuwait in 2004 before moving its base to the UAE in 2012. The UAE-based company operates in the Emirates, Kuwait, Qatar, Bahrain, Egypt, Oman, Jordan, and Iraq. The company has more than six million customers and more than 119,000 riders.
According to its website, Talabat boasts 65,000 participating restaurants, grocers, and other vendors.