Talabat Finalises $32 Million Acquisition Of Instashop

Talabat, the prominent Middle Eastern online food delivery platform, has completed the Acquisition of InstaShop, a leading online grocery marketplace in the region, for $32 million. This strategic move, effective from February 25, 2025, aims to bolster Talabat's presence in the grocery and retail sectors across the Middle East and North Africa region.

The acquisition was fully financed through Talabat's internal cash reserves, resulting in InstaShop becoming a wholly-owned subsidiary. Despite the change in ownership, InstaShop will continue to operate as an independent brand within Talabat's Grocery and Retail vertical, ensuring continuity for its existing customer base.

InstaShop demonstrated robust growth in 2024, achieving a Gross Merchandise Value of $631 million, a 16% increase from the previous year's $545 million. This figure represents 8% of Talabat's total GMV for 2024, highlighting InstaShop's significant market presence and aligning with Talabat's strategy for accelerated expansion into the grocery and retail sectors.

Tomaso Rodriguez, Chief Executive Officer of Talabat, expressed enthusiasm about the acquisition, stating that it supports and complements Talabat's strategy to enhance its grocery and retail offerings. He emphasized the company's commitment to improving customer experience by providing greater choice and convenience.

This transaction marks a significant development in the MENA region's online delivery landscape. InstaShop, established in 2015, has rapidly grown to become a key player in the online grocery delivery market, operating in countries such as the United Arab Emirates, Qatar, Egypt, and Bahrain. Its acquisition by Talabat is expected to unlock operational and technological efficiencies for both businesses, with integration activities already underway.

The deal also reflects a notable decrease in InstaShop's valuation over a relatively short period. In 2020, Delivery Hero SE, a German multinational online food-delivery service, acquired InstaShop for approximately $360 million. The current sale to Talabat for $32 million indicates a significant reduction in the company's valuation, though specific reasons for this decline have not been publicly detailed.

Delivery Hero SE has been adjusting its global strategy, focusing on different markets and optimizing its portfolio. The sale of InstaShop aligns with these strategic shifts, allowing Talabat to strengthen its position in the MENA region's competitive online grocery delivery market.

The acquisition is expected to benefit consumers by enhancing the range and quality of services offered. By combining Talabat's extensive logistics network with InstaShop's established grocery delivery platform, customers can anticipate improved service efficiency and an expanded selection of products. Additionally, local retailers partnering with InstaShop may experience increased reach and sales through Talabat's broader customer base.

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