Top online grocery delivery marketplace InstaShop acquired by Talabat for $32 M
InstaShop Ltd., one of the top online grocery delivery marketplaces in the MENA region, has been successfully acquired by Talabat Holding plc, the region’s top on-demand online ordering and delivery platform.
Instagram is a well-known online marketplace that was founded in June 2015 and has its headquarters in Dubai. It easily links customers and vendors, expediting the purchasing process and offering the logistical resources required to satisfy customers’ demands for quick delivery. With a focus on the grocery and retail industries in Egypt and the United Arab Emirates, Instagram sells a variety of goods, such as groceries, pharmaceuticals, cosmetics, and other personal care items.
With positive and improving EBITDA margins, Instagram saw significant growth in 2024, reaching $631 million in GMV, up 16% from $545 million the year before and representing 8% of Talabat’s 2024 GMV. This steady performance demonstrates Instagram’s dominance in the market and supports Talabat’s plan for quick growth into the grocery and retail industries.
Through the acquisition of Instagram, which will remain a separate brand within Talabat’s Grocery and Retail vertical, the two platforms can work together and exchange insights to improve partner tools and customer experience. Partners’ reach is increased through cross-listing opportunities provided by this partnership, and new growth potential is unlocked through collaborative business planning.
Tomaso Rodriguez, Chief Executive Officer of talabat, commented: “We are thrilled to welcome instashop into the talabat family. The acquisition supports and complements our strategy to grow our grocery and retail offering and is a testament to our commitment to enhancing customer experience and providing customers with even greater choice and convenience. By integrating instashop’s innovative platform into our operations, we aim to create a more seamless and efficient delivery experience for our customers across the UAE and Egypt whilst also driving further product and technology synergies across our business. Together, we will unlock new opportunities for growth and innovation, setting a new standard in the online grocery and retail sector.”
Nikola Cabarkapa, Chief Executive Officer of instashop, commented: “Joining forces with talabat marks an exciting new chapter for instashop. We have always been dedicated to connecting our users with their favourite local stores, and now, with talabat’s support, we can amplify our impact even further. This partnership will enable us to leverage talabat’s extensive network and operational expertise, allowing us to enhance our service delivery and continue our mission of providing exceptional convenience to our customers. We are excited about the significant customer and partner benefits this collaboration will bring and look forward to a successful journey ahead.”
Significant operational synergies will be made possible for Talabat as a result of the deal, including better product and technology integration, fleet synergies and shared resources, and the growth of its partner network through cross-listing opportunities.
