Online platform Talabat is now full owner of grocery portal InstaShop

Dubai: The online order and delivery platform Talabat has completed the acquisition of InstaShop Ltd, one of the bigger digital grocery delivery marketplaces in the MENA markets.

The deal sees Talabat take over 100% of instashop’s share capital from Delivery Hero. (The numbers will be consolidated into talabat’s financial accounts from February 25, 2025. Talabat is trading at Dh1.56 on the DFM, slightly off on the Dh1.6 IPO price.)

The buy was funded through Talabat's cash reserves, for $32 million.

Talabat - which went in for an IPO and DFM listing late 2024 - itself has been part of the Delivery hero portfolio since 2016.

Delivery Hero bought InstaShop in August 2020, when online booking and delivery services were trending during the initial Covid phase. And consumers mostly stuck to those buying habits in the years since.

"With this acquisition, instashop becomes a wholly-owned subsidiary of Talabat, strengthening its grocery and retail offering and expanding its partner network across the MENA region," said a statement.

Talabat's pro forma grocery and retail GMV (gross merchandise value) for 2024 will go past $2.5 billion, 'reinforcing its market leadership in the region'.

"This acquisition promises to unlock operational and technology synergies across both businesses, with integration activities already underway," said the statement.

The purchase plan was first announced in September 2024.

"The acquisition supports and complements our strategy to grow our grocery and retail offering," said Tomaso Rodriguez, CEO of Talabat.

"By integrating instashop’s innovative platform into our operations, we aim to create a more seamless and efficient delivery experience for our customers across the UAE and Egypt whilst also driving further product and technology synergies across our business."

Last year, InstaShop had $631 million in gross merchandise value, a 16% increase from the year before - and equivalent to 8% of talabat's 2024 GMV.

"This consistent performance highlights instashop’s market strength and aligns with Talabat's strategy for accelerated expansion into grocery and retail," said the statement.