Talabat acquires InstaShop for $32 million
In major MENA push
Talabat Holding, an on-demand online ordering and delivery platform in the MENA region, has acquired InstaShop Ltd, one of the region’s foremost online grocery delivery marketplaces for $32 million.
The move will enable Talabat to enhance further its grocery and retail vertical and expand its presence across the MENA region.
As a result of the deal, InstaShop becomes a wholly-owned subsidiary of Talabat, strengthening the company’s position in the competitive grocery and retail markets.
With InstaShop now under its umbrella, Talabat’s pro forma Gross Merchandise Volume (GMV) for the Grocery and Retail sector for 2024 exceeds $2.5 billion, reinforcing its market leadership in the region. InstaShop’s growth trajectory in the past year further aligns with Talabat’s broader strategy of accelerating its presence in the sector.
The acquisition is expected to deliver valuable operational and technological synergies between the two companies, and integration efforts are already underway. This collaboration will also provide customers with even more excellent choice and convenience, enhancing their shopping experience across the UAE and Egypt.
Founded in June 2015 and based in Dubai, InstaShop has made significant strides connecting users with local vendors, particularly in the grocery and retail sectors. The platform offers various products, from groceries and pharmacy items to beauty and personal care essentials. With operations in the UAE and Egypt, InstaShop has consistently grown and improved its services, delivering a fast and efficient delivery experience.
In 2024, InstaShop saw a 16% increase in its GMV, reaching $631 million, compared to $545 million in the previous year. This performance highlights the platform’s strong market position, representing 8% of Talabat’s total GMV for 2024. Despite the rapid growth, InstaShop has maintained positive and improving EBITDA margins, further demonstrating the platform’s profitability and potential for continued expansion.
After the acquisition, InstaShop will continue to operate as an independent brand within Talabat’s broader grocery and retail vertical. However, the two platforms will collaborate closely, allowing for cross-listing opportunities and expanding their network of partners across the region. Additionally, the companies will share operational insights and resources, which are expected to improve efficiencies, reduce costs, and provide enhanced service delivery.
Tomaso Rodriguez, CEO of Talabat, said: “We are thrilled to welcome InstaShop into the Talabat family. This acquisition strengthens our grocery and retail offering and supports our commitment to providing customers with more excellent choices and convenience.
“Integrating InstaShop’s innovative platform into our operations will create a seamless and efficient delivery experience for customers across the UAE and Egypt, driving further product and technology synergies.”
Nikola Cabarkapa, CEO of InstaShop, added: “Joining forces with Talabat marks an exciting new chapter for us. With Talabat’s operational expertise and extensive network, we will be able to amplify our impact and continue to provide exceptional convenience to our customers. We look forward to this partnership’s significant benefits to our customers and partners alike.”
Image: InstaShop offers various products, from groceries and pharmacy items to beauty and personal care essentials. Credit: Mizuno K
