Food delivery platform Talabat Holding has successfully completed the acquisition of InstaShop, a prominent online grocery delivery marketplace in the region, from Delivery Hero. The deal, valued at $32 million, was disclosed in a regulatory filing on Thursday. This strategic move is part of Talabat’s ongoing expansion efforts within the grocery and retail sector.
The acquisition was fully financed through Talabat’s internal cash reserves and was finalized on February 25, 2025. This milestone marks a significant step in Talabat’s growth strategy, as outlined in the filing submitted to the Dubai Financial Market (DFM). With this transaction, InstaShop has become a wholly owned subsidiary of Talabat, further solidifying the company’s footprint in the rapidly growing grocery and retail market across the Middle East and North Africa (MENA) region.
InstaShop operates primarily in the United Arab Emirates (UAE) and Egypt, providing a diverse range of products that include groceries, pharmacy items, beauty essentials, and personal care products. The integration of InstaShop into Talabat is expected to enhance the grocery and retail vertical of the company, creating operational and technological synergies between the two entities. This acquisition, which was initially announced in September 2024, aims to improve Talabat’s ability to deliver faster and more efficient services to its customers.
Despite the acquisition, InstaShop will maintain its identity as an independent brand within Talabat’s Grocery and Retail vertical. This structure will facilitate collaboration between the two platforms, allowing them to share insights that can enhance customer experiences and improve partner tools. Talabat noted that this partnership could create cross-listing opportunities for partners, thereby extending their market reach. Additionally, joint business planning is expected to unlock new avenues for growth.
Strong Growth Metrics
Talabat’s pro forma Grocery and Retail Gross Merchandise Volume (GMV) for 2024 exceeded $2.5 billion, reflecting the company’s robust performance in the sector. Revenue for the same year surged by 32% year-on-year, reaching $3 billion, surpassing market expectations due to strong performance across various regions. The company reported an impressive adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) increase of 55% year-on-year, totaling nearly $500 million. This financial report was the first following Talabat’s $2 billion initial public offering (IPO) in December.
InstaShop also demonstrated strong growth, reporting a GMV of $631 million in 2024, which represents a 16% increase year-on-year. This figure accounts for approximately 8% of Talabat’s overall GMV for 2024, highlighting the significant contribution of InstaShop to Talabat’s expanding grocery and retail operations. Overall, the acquisition of InstaShop is poised to enhance Talabat’s market position, improve service delivery, and drive further growth in the competitive grocery delivery landscape of the MENA region.
