InstaShop today announced that it has been acquired by Delivery Hero, for a total base valuation of $360 million (on a cash and debt-free basis). This transaction marks the next step in Delivery Hero’s quest to pioneer q-commerce – the next generation of e-commerce – by joining forces with one of the largest online grocery platforms in the Middle East and North Africa.

John Tsioris and Ioanna Angelidaki founded Instashop in 2015. The startup will bring significant industry expertise and a strong local team to Delivery Hero’s family of entrepreneurs and brands. John Tsioris, CEO & 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 generates approximately $300 million GMV on a Q2 2020 annualised 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.

Instashop was backed over the years by Jabbar Internet Group, one of the leading tech investors in the region, and VentureFriends, a European early-stage investor from Greece. The exit marks a record for the Greek tech ecosystem as well as a major exit for the MENA region and is expected to further support the growth of entrepreneurial tech activity in both regions.

Niklas Östberg, CEO and Co-Founder of Delivery Hero, said: “As a leading player in the grocery segment, InstaShop has built a service that 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 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, leveraging synergies. 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 for expanding its footprint globally.