Germany's Delivery Hero buys Dubai's online marketplace InstaShop

Delivery Hero has acquried Dubai-based online marketplace InstaShop.

The Berlin-based company said in a statement on Thursday (August 27) that the acquisition is the next step in its quest to "pioneer q-commerce - the next generation of e-commerce".

"Delivery Hero has acquired all of the outstanding shares of InstaShop based on a valuation of $360 million. The initial purchase price amounts to approximately $270 million and the size of the deferred component to the founding team is dependent on the growth and profitability of the business in the following years," said Delivery Hero.

Founded in 2015, InstaShop connects customers with vendors and facilitates the purchase, with the shops taking care of the logistics. It started with groceries but quickly also onboarded pharmacies, butcheries, pet shops and others. It had more than 500,000 active users in the first half of 2020, according to Delivery Hero. 

InstaShop generates approximately $300 million gross merchandise value on a Q2 2020 annualised basis, up about 330% year-on-year, and a positive EBITDA margin, according to Delivery Hero,

Its plan for InstaShop is for it to launch new markets and invest into further growth.

InstaShop operates in UAE, Qatar, Bahrain, Egypt, and Lebanon. 

It will continue to operate as an independent brand under the current leadership. The start-up was founded by Ioanna Angelidaki and John Tsioris.

Delivery Hero operates its own delivery service primarily in over 600 cities around the globe.

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