The biggest online marketplace in MENA, InstaShop, has acquired GroCart, a B2B business marketplace service based in the United Arab Emirates, UAE.
But the price of the purchase was not made public.
The deal shows that Instashop is serious about growing its online business. The purchase of Grocart is a big step towards InstaShop’s goal of becoming the best platform for companies in the Middle East and North Africa (MENA) that want to streamline their operations. Also, the move lets InstaShop move into the profitable Traditional Trade and Horeca business, which is a wholesale industry that is growing quickly.
Instashop is an online platform that was started in 2015 by John Tsioris. It is used by grocery stores, pet stores, pharmacies, and other businesses.
The business is active in the UAE, Egypt, Oman, Qatar, Bahrain, Egypt, Lebanon, Greece, and Lebanon. Delivery Hero, a company based in Germany, bought Instashop for $360 million in 2020.
John Tsioris, the founder and CEO of InstaShop, said, “We know that businesses’ needs change in today’s fast-paced market, and we are thrilled to reveal that we have bought GroCart.
“We want to change the way companies shop by using our large network and cutting-edge technology to make the process more efficient, cost-effective, and smooth. This relationship lets us form new partnerships and give companies access to new solutions that will help them thrive in the digital economy.”
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What’s Grocart
GroCart is a platform for wholesalers, retailers, and manufacturers in the area. It allows suppliers to sell and transport their products to local companies like grocery stores and supermarkets. It was founded in 2020 by Hussein Hosni and Nesma Zaghow to change the food market.
Hussein Hosni, GroCart’s co-founder and CEO, said, “I’m proud of what we’ve done at GroCart, and I’m very happy about the next part of our story.” In two years, we established a robust startup that grew swiftly. Grocart will lead the UAE food B2B industry after this huge breakthrough.
“Together with InstaShop, we strive to make FMCG easier to buy, sell, finance, and pay for. Due to InstaShops’ big client base and excellent finances, Grocart will get more opportunities by buying it.”
MENA M&A
Mergers in MENA increased 42% in Q1 2023 compared to Q1 2022. UAE deals totaled $2 billion. Saudi Arabia, Kuwait, Egypt, and Oman followed. Merger values rose, indicating capital market confidence, while deal volumes fell 20% from 2022.
UAE FMCG Wholesale
The Middle East retail industry is expected to rise 4.0 percent from US$ 360.4 Billion in 2020 to US$ 438.5 Billion in 2025. Population growth and foreign tourism are predicted to boost retail sales through 2025 after a dip in 2020. UAE FMCG continues to grow. Zawya estimates the UAE FMCG wholesale market at $40 billion.