Delivery Hero acquires InstaShop – a leading online grocery marketplace in MENA – and publishes H1 2020 report
- Delivery Hero acquires 100% of InstaShop, one of the largest online grocery platforms in the Middle East and North Africa
- Welcoming a major player in the grocery segment to its network, Delivery Hero strengthens its quick commerce (q-commerce) position
- InstaShop is a profitable business founded by Ioanna Angelidaki and John Tsioris, who will bring significant industry expertise and a strong local team to Delivery Hero’s family of entrepreneurs and brands
- Following the publication of Q2 2020 earnings on 28 July, Delivery Hero’s half year report 2020 is now available, confirming the numbers previously released
Berlin, 27 August 2020 – Delivery Hero SE (“Delivery Hero”), today released its half year report for 2020 and announced that it has acquired InstaShop, a leading online grocery marketplace in the Middle East and North Africa. Through this acquisition, Delivery Hero continues to complement its position in grocery delivery and emphasizes the importance of q-commerce.
InstaShop – one of the leading online grocery marketplaces in MENA
Delivery Hero has acquired all of the outstanding shares of InstaShop based on a valuation of USD 360 million. The initial purchase price amounts to approximately USD 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. The acquisition of InstaShop marks the next step in Delivery Hero’s quest to pioneer q-commerce – the next generation of e-commerce.
Niklas Östberg, CEO and Co-Founder of Delivery Hero, said:
I’m delighted to welcome InstaShop to the Delivery Hero family. The InstaShop team embodies our values and brings a strong vision and capabilities. As a leading player in the grocery segment, InstaShop has built a service customers love, and their expertise is a great addition to our quick commerce expansion. Together, we will continue to invest to drive the future of delivery by pushing the standards for speed and convenience.
InstaShop was launched in June 2015 and is based in Dubai. The company generates approximately USD 300 million GMV on a Q2 2020 annualized basis, up c. 330% year-on-year, and a positive EBITDA margin. With Delivery Hero’s support, the plan is to launch new markets and invest into further growth.
InstaShop’s business model is marketplace-based: it connects customers with vendors and facilitates the purchase, while the shops take care of the logistics. As a leading grocery delivery marketplace in the Middle East and North Africa, InstaShop offers scheduled as well as on-demand deliveries in 45 minutes on average. Partnering with approximately 1,500 vendors, the company operates in five countries: the United Arab Emirates, Qatar, Bahrain, Egypt and Lebanon.
John Tsioris, CEO and Co-Founder of InstaShop, said:
The partnership with Delivery Hero is a great opportunity for us to continue to grow our business and put the group’s expertise to use. 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 at InstaShop. Delivery Hero is a network driven by ambitious founders and entrepreneurs just like ourselves, and we are proud to become part of this family.
InstaShop will continue to operate as an independent brand under the current leadership and is a complementary fit next to Delivery Hero’s current quick commerce strategy in the region. InstaShop’s business model has proven to be rapidly scalable and economically successful. While InstaShop’s immediate focus lies on driving growth within its current geographies, joining Delivery Hero also opens up future complementary opportunities of expanding its footprint globally.
H1 report – revenues increased significantly by 93.7%
Delivery Hero’s full half-yearly financial report 2020 is now available here. As already stated in the Q2 2020 trading update on July 28, despite an initial negative impact from COVID-19, segment revenues increased significantly by 93.7% on a year-on-year basis to EUR 1,126.8 million in the first half of 2020.
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 (EUR 167.2 million in H1 2020 compared to EUR 168.3 million) despite lost revenues and their corresponding profit contribution from the MENA segment due to COVID-19-related restrictions. A further increase of the company’s delivery share in Asia and several measures to support restaurants during COVID-19 (e.g. waiving of onboarding fees and free delivery) added to this. The adjusted EBITDA margin in H1 2020 improved in each segment compared to the same period in 2019.
Based on the strong operative performance in the first six months of the current business year, Delivery Hero expects continuous growth also in the second half of 2020. Together with the publication of the trading update in July, the guidance on Total Segment Revenues has therefore been raised to between EUR 2.6 billion and EUR 2.8 billion for the full year 2020, up from EUR 2.4 billion to EUR 2.6 billion before. The adjusted EBITDA group margin for the full year 2020 continues to be expected at between -14% and -18%, while the range for additional investments had been reduced to up to EUR 150 million, down from up to EUR 200 million as per previous guidance.
ABOUT DELIVERY HERO
Delivery Hero has a strong presence in 39 out of 44 countries in which it is operating across Europe, Latin America, Asia, the Middle East and North Africa. Delivery Hero also operates its own delivery service primarily in over 600 cities around the globe. Headquartered in Berlin, Germany, the Company group has more than 27,000 employees. For more information, please visit www.deliveryhero.com
InstaShop, a homegrown marketplace on demand delivery app, was introduced to Dubai in 2015 as a grocery delivery app; today InstaShop has onboarded various local retailers such as pharmacies, butcheries, pet shops and others, evolving into a one stop-shop solution. The ease and convenience of the service is the reason why InstaShop is a leading company in the on demand grocery delivery market in the MENA region, with more than 500,000 active users in H1 2020, currently present in five countries. For more information please visit https://instashop.com/
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