UAE's Talabat acquires InstaShop for $32M

UAE-based delivery platform Talabat has completed the $32 million acquisition of Dubai-based grocery service InstaShop from its German parent company, Delivery Hero. The move strengthens Talabat’s grocery and retail portfolio in the UAE and Egypt.

The company confirmed the transaction was fully funded through Talabat’s internal cash reserves on Thursday. Following the acquisition, Talabat’s pro forma grocery and retail GMV for 2024 has exceeded $2.5 billion, with integration efforts already underway to enhance operational and technological efficiencies.

Delivery Hero originally acquired InstaShop in 2020 for $360 million as part of its Middle East and North Africa expansion. However, the $32 million sale price aligns with InstaShop’s capital amount, following Delivery Hero’s corporate restructuring ahead of Talabat’s IPO in December 2024.

Tomaso Rodriguez, CEO of Talabat, stated: "By integrating InstaShop’s platform, we aim to create a more seamless and efficient delivery experience for our customers in the UAE and Egypt while unlocking product and technology synergies across our business.”