Delivery Hero to buy Mideast grocery app InstaShop

Delivery Hero SE has agreed to buy InstaShop at a $360 million valuation expanding the Berlin-based food-delivery's grocery service in the Middle East and North Africa.

Delivery Hero will initially pay $270 million and is deferring the rest until the company hits growth and profitability targets in coming years, the company said in its half-year report on Thursday.

The company has been steadily growing its so-called quick commerce business, which delivers small batches of groceries, pharmaceuticals, electronics and other household goods to customers in less than an hour.

Delivery Hero, which recently replaced defunct payments company Wirecard AG in Germany's DAX benchmark index, also raised its estimates for segment revenues to as much as 2.8 billion euros ($3.3 billion), from up to 2.6 billion euros previously.

The company's shares rose 1.5% in Frankfurt on Wednesday and have gained 35 per cent this year.