Endeavor member company Instashop gets acquired by Delivery Hero
Greece’s biggest tech exit to date
Delivery Hero announced the acquisition of Instashop, the on-demand delivery company, led by Endeavor Entrepreneur John Tsioris, for a total base valuation of USD 360 million, a record deal for a Greek startup and one of the largest recent exits in the MENA region.
Only a few months after the announcement of Softomotive’s acquisition by Microsoft, Instashop’s acquisition sets a new record for the Greek tech ecosystem and is expected to further support the growth of entrepreneurial tech activity in Greece.
According to the announcement, Delivery Hero acquired 100% of InstaShop. The initial purchase price was $270 million according to Reuters, the remaining $90 million will be dependent on InstaShop’s growth and profitability in the future. 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.
Founded in 2015 in Dubai by Greek entrepreneurs John Tsioris and Ioanna Angelidaki, Instashop generates approximately USD 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 the Greek venture capital fund VentureFriends. In March 2019, Instashop joined the Endeavor Global Network and during the same year, Endeavor Entrepreneur John Tsioris entered Fortune Greece’s 40 under 40 list.
In 2020, during the crisis caused by the Coronavirus pandemic, Instashop showed excellent performance, thanks to the surge of demand brought by the new reality which had a huge impact on the company’s growth. Since the very first days of the lockdown, there was an increase in orders, the basket value increased by more than 61% and the company gained new customers.
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 of expanding its footprint globally.
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.”
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.”