Food delivery service Delivery Hero yesterday revealed it has bought InstaShop, a United Arab Emirates-based online grocery delivery platform backed by corporates Jabbar Internet Group and Souq, for about $360m.
The transaction valued InstaShop at $360m and consists of $270m in cash that has been provided upfront, together with additional payments dependent on the service hitting growth milestones post-acquisition.
Founded in 2015, InstaShop runs an on-demand grocery delivery service across the United Arab Emirates, Egypt, Qatar, Bahrain and Lebanon. It has partnerships in place with some 1,500 vendors and brings in goods in as little as 45 minutes.
The company will operate under its existing brand as an independent subsidiary of Delivery Hero, which is now present in 44 countries.
InstaShop had raised a total of $7m pre-acquisition, according to TechCrunch. E-commerce marketplace Souq paid an undisclosed amount for a ‘significant minority stake’ in 2016 after internet company Jabbar Internet Group and venture capital fund VentureFriends each supplied 50% of an $840,000 investment earlier the same year.
Niklas Östberg, Delivery Hero’s co-founder and chief executive, said: “I am delighted to welcome InstaShop to the Delivery Hero family. The InstaShop team embodies our values and brings a strong vision and capabilities.
“As a leading player in the grocery segment, InstaShop has built a service customers love, and their expertise is a great addition to our quick commerce expansion. Together, we will continue to invest to drive the future of delivery by pushing the standards for speed and convenience.”
