Germany’s Delivery Hero buys grocery marketplace InstaShop

Germany’s Delivery Hero has agreed to buy online grocery marketplace InstaShop for an initial $270 million, as it branches out of online takeaway meals into new services.

Delivery Hero, catapulted this week into Germany’s blue-chip DAX index less than a decade after its founding, has been one of the winners of the COVID-19 pandemic as more people order in meals due to lockdowns.

InstaShop, launched in 2015, operates in the United Arab Emirates, Qatar, Bahrain, Egypt and Lebanon and has an annualised gross merchandise volume of $300 million, Berlin-based Delivery Hero said.

Depending on future growth and profitability, the deal could value InstaShop at $360 million.

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.

Berenberg analyst Sarah Simon said the market was unclear about the potential for the grocery ordering business.

“People are concerned that the company is pushing even further beyond the core online food marketplace activity,” she said.

Delivery Hero raised its 2020 sales forecast last month after coronavirus lockdowns and investment in ultra-fast deliveries boosted quarterly figures.

Reuters

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.