DFM-listed Talabat acquired 100% of Dubai-based on-demand online grocery delivery platform Instashop in a USD 32 mn related-party transaction with its Berlin-based parent company and majority shareholder Delivery Hero as part of a restructuring push, it said in a statement (pdf). Instashop will continue to operate as an independent brand, under Talabat’s grocery and retail vertical.

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The cash-based transaction was financed by Talabat’s internal reserves, with the amount reflecting Instashop’s capital amount rather than its fair value. The company was valued at USD 360 mn — USD 270 mn paid upfront, with the rest deferred and tied to Instashop’s future performance — when it was bought by Delivery Hero in 2020 — making it a favorable acquisition for Talabat’s shareholders. Instashop operates in the UAE and Egypt.

REMEMBER- Talabat listed a 20% stake on the DFM in a USD 2 bn IPO last December.

It’s all about creating synergies: Talabat expects the transaction to result in operational and technology synergies across both businesses, with streamlined delivery and product operations once integration, which is currently underway, is complete.

The acquisition put Talabat’s gross merchandise value — the total value of all goods sold — in 2024 at USD 2.5 bn on a pro forma basis. Instashop’s GMV rose 16% y-o-y to USD 631 mn last year, equivalent to 8% of talabat’s 2024 GMV, with positive and improving EBITDA margins, according to the statement.

Market reax: Talabat’s stock closed down 0.7% on Thursday following the news to trade at AED 1.53.

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