Dubai-based online ordering and delivery platform Talabat Holdings has acquired a 100% stake in InstaShop Ltd from food delivery heavyweight Delivery Hero SE for $32 million, according to a press release.
The transaction is effective and consolidated in Talabat’s financial accounts from 25 February 2025.
The sale and purchase agreement, first announced in September 2024, was fully funded through talabat’s internal cash reserves.
With this acquisition, Instashop becomes a wholly-owned subsidiary of Talabat and will continue to operate as an independent brand within Talabat’s grocery and retail vertical.
“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. Together, we will unlock new opportunities for growth and innovation,” Tomaso Rodriguez, Chief Executive Officer of Talabat, said in the release.
Talabat’s pro forma grocery and retail Gross Merchandise Value (GMV) for 2024 surpassed $2.5 billion, after the acquisition.
Established in June 2015, InstaShop offers a wide range of products, including groceries, meat, fish and seafood, toys, flowers, bakeries and cakes, pharmacy items, pet food, electronics, beauty and personal care products, across the UAE and Egypt. It was acquired by Delivery Hero in 2020.
InstaShop’s GMV reached $545 million in 2024, up by 16% from the previous year. This is equivalent to 8% of Talabat’s 2024 GMV. instaShop also reported positive and improved EBITDA margins.
Founded in Kuwait in 2004, Talabat expanded to the United Arab Emirates, Oman, Qatar, Bahrain, Jordan, Iraq, and Egypt, catering to more than six and a half million active customers as of December 2024.
Talabat completed its initial public offering on the Dubai Financial Market (DFM) in December. The $2 billion IPO was the UAE’s largest listing for 2024 and the first ever technology listing on the Dubai bourse.
Talabat’s shares dropped by 1.9% to close at AED 1.53 on March 6, 2025 after news of the acquisition deal.
