Talabat acquires 100% of Instashop from parent company Delivery Hero as part of restructuring push

DFM-listed Talabat acquired 100% of Dubai-based on-demand grocery delivery marketplace Instashop in a related-party transaction from 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. The sale and purchase agreement was inked (pdf) in September 2024.

Talabat paid USD 32 mn for the company from its internal reserves, with the amount reflecting Instashop’s capital amount rather than its fair value, the statement reads. 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% yesterday to trade at AED 1.53.