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Details of the acquisition show that Delivery Hero which valued InstaShop at $360 million made an upfront payment of $270 million with plans underway to pay another $90 million to complete the deal.
In a deal that raised a record for Greek startups, the German retail delivery company Delivery Hero has acquired InstaShop, the Dubai- based instant grocery delivery company.
In a release by the companies, they stated that the acquisition is meant to expand their markets share of the On-Demand delivery sphere. The deal is coming at a time that the demand for online shopping and deliveries have soared due to the coronavirus pandemic. As per try to avoid crowded places, they have resorted to shopping online with the attendant surge in demand for e-commerce services.
Speaking on the deal, the CEO of Delivery Hero, Niklas Ostberg said that the vision for the acquisition is to keep InstaShop as an independently operating entity with the same management under Delivery Hero. The Berlin-based company that is publicly traded has a market capitalization of $22 million. Its grocery delivery service spans a number of countries in Europe, Middle East/Africa, Asia and Latin America.
Details of the acquisition show that Delivery Hero which valued InstaShop at $360 million made an upfront payment of $270 million with plans underway to pay another $90 million to complete the deal. The last part of the payment will be based on a clause that demands InstaShop grows by a certain rate within a specified period of time.
InstaShop presently operates in Egypt, Bahrain, UAE, Greece and Lebanon. The founders who were from Greece are Ioanna Angelidaki and John Tsioris believe that the acquisition is beneficial to investors. The five years old company is already in profit prior to the deal.
Delivery Hero also in profit, having posted a half year result showing 97.3% increase in profit ($1.3 billion) on year on year basis. InstaShop CEO said that the company is unique in its offering to clients as shown from survey of more than 100 competitors.
“The largest part in Latin America and MENA but Asia catching up quickly. Today we cover 22,000 vendors in our quick commerce area,” he said.
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