Berlin-based Delivery Hero has acquired all the outstanding shares of InstaShop in a deal estimated at $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,” Delivery Hero said in a press release.
Delivery Hero is a multinational online food delivery service.
Instashop, one of the largest online grocery platforms in the Middle East and North Africa, “is a profitable business founded by Ioanna Angelidaki and John Tsioris,” the release said.
Niklas Östberg, CEO and co-founder of Delivery Hero, said: “As a leading player in the grocery segment, InstaShop has built a service customers love.” He added that the expertise of the InstaShop founders, who will stay on with the combined company, “is a great addition” to Hero’s expansion plans.
Dubai-based InstaShop, launched in June 2015, has turned into a multimillion-dollar powerhouse, the release said. “With Delivery Hero’s support, the plan is to launch new markets and invest into further growth.”
InstaShop offers a marketplace that “connects customers with vendors and facilitates the purchase, while the shops take care of the logistics,” the release said.
“I really enjoyed working with Delivery Hero on this deal and am thrilled to continue to further expand the reach and quality of our service,” said Tsioris, CEO of InstaShop, which will continue to operate as an independent brand.
When the pandemic hit, Delivery Hero added groceries to its list of offerings.
The company said in its Aug. 27 release that “after the easing of lockdowns and curfews in many countries during the second quarter, the company’s business activities resumed their growth trajectory. In terms of profitability, our gross profit was broadly stable year-on-year.”