- Germany-based food ordering company Delivery Hero SE (OTCMKTS: DLVHF) announced that it has acquired Dubai-based grocery app company InstaShop for $360 million. These are the details.
Germany-based food ordering company Delivery Hero SE (OTCMKTS: DLVHF) announced that it has acquired Dubai-based groceries app company InstaShop for $360 million. Launched five years ago, InstaShop is used by half a million users across the Middle East. And the company offers deliveries fruits, vegetables, medicine, and flowers within an hour.
While Delivery Hero already offers grocery deliveries through its apps, CEO Niklas Östberg told the Financial Times acknowledged that many customers would not associate meal ordering platforms with other services.
“It will take years until people realize they can actually get anything delivered by us, including groceries,” said Östberg via the Financial Times. “The awareness customers have of us is often around food, or in some cases the delivery of everything, while InstaShop is only known for being grocery delivery.”
Delivery Hero plans to expand the number of countries where InstaShop is available following the acquisition. As part of the deal, Delivery Hero is going to buy InstaShop for $270 million upfront and $90 million in the next few years.
The stock price of Delivery Hero has more than doubled this year due to an increase in demand during the pandemic. Östberg believes that the additional frequency of ordering will likely see a fall back once things become more normal. Delivery Hero recently posted its half-year results and revenues were up 93.7% on a year-over-year basis at €1,126.8 million (about $1.3 billion) for the period.
InstaShop was founded by Ioanna Angelidaki and John Tsioris. And before the acquisition, InstaShop raised about $7 million in funding.
