Talabat Holding has successfully completed the acquisition of Instashop, a leading online grocery delivery marketplace in the MENA region, from Delivery Hero SE. The acquisition involves 100% of Instashop’s share capital and was fully funded by Talabat’s internal cash reserves, totaling $32 million. This strategic move positions Instashop as a wholly-owned subsidiary of Talabat, effective from February 25, 2025, and will be consolidated into Talabat’s financial accounts. Despite becoming a subsidiary, Instashop will continue to operate as an independent brand within Talabat’s Grocery and Retail vertical.
Instashop, founded in June 2015 and headquartered in Dubai, specializes in connecting users with vendors across the UAE and Egypt. It offers a diverse range of products, including groceries, pharmacy items, beauty essentials, and personal care products. In 2024, Instashop achieved significant growth, reaching a Gross Merchandise Value (GMV) of $631 million, marking a 16% increase from the previous year. This performance accounted for 8% of Talabat’s 2024 GMV and demonstrated positive and improving EBITDA margins.
The acquisition is expected to unlock substantial operational synergies for Talabat, including the expansion of its partner network and optimized operations through fleet synergies and shared resources. It also promises improved product and technology integration, enhancing customer experience and partner tools. Following the acquisition, Talabat’s pro forma Grocery and Retail GMV for 2024 surpassed $2.5 billion, reinforcing its market leadership in the region.
Talabat’s CEO, Tomaso Rodriguez, expressed excitement about integrating Instashop’s innovative platform to create a more seamless delivery experience across the UAE and Egypt. Instashop’s CEO, Nikola Cabarkapa, highlighted the partnership’s potential to amplify Instashop’s impact by leveraging Talabat’s extensive network and operational expertise.
The acquisition aligns with Talabat’s strategy to accelerate its expansion into the grocery and retail sectors, offering cross-listing opportunities for partners and unlocking new growth potential. As Instashop continues to operate independently within Talabat’s vertical, both companies aim to set a new standard in the online grocery and retail sector by enhancing customer convenience and choice.
Talabat, founded in Kuwait in 2004, is the leading on-demand delivery platform in the MENA region, offering a wide range of products from restaurants and retailers. Its acquisition of Instashop further solidifies its position as a market leader in the region.
The integration of Instashop into Talabat’s operations is expected to drive further product and technology synergies, benefiting both customers and partners. This strategic move underscores Talabat’s commitment to innovation and customer satisfaction, positioning it for continued growth and success in the MENA market.
Talabat’s extensive network and operational expertise will enable Instashop to enhance its service delivery and continue its mission of providing exceptional convenience to customers. The partnership will also facilitate joint business planning, unlocking new opportunities for growth and innovation.
In summary, the acquisition of Instashop by Talabat marks a significant milestone in the MENA region’s online grocery and retail landscape, promising enhanced customer experiences and operational efficiencies.
