Delivery Hero the Berlin-based restaurant delivery company announced it has agreed to acquire online grocery marketplace InstaShop for $360million, as it ventures into new services.
Grocery delivery has emerged as one of the hottest categories in e-commerce in the last six months, partly due to coronavirus pandemic, where stay-at-home orders plus a general reluctance to avoid crowded places have led many more consumers to shop online.
Delivery Hero disclosed the acquisition values the company at $360 million, $270 million upfront plus an additional $90 million depending on future prospects and lucrativeness, the deal could rate InstaShop at $360 million.
InstaShop, launched in 2015, operates in the United Arab Emirates, Qatar, Bahrain, Egypt and Lebanon and has an annualized gross merchandise volume of $300 million, Berlin-based Delivery Hero said.
The Dubai-based firm will continue to operate as an independent brand under the current leadership, Delivery Hero said.
The German firm’s shares were down 1.4% in mid-morning Frankfurt trade, the biggest fall on the DAX.