Souq.com, an online marketplace platform in the region, today announced its investment in InstaShop, a hyperlocal online grocery ordering app.
Through this investment Souq.com has taken a significant stake in the company as a strategic investor with a view to further expand its offering in the fast growing FMCG and Grocery categories, leveraging on its current user base.
The investment comes at a time when grocery shopping online is experiencing a significant global uptake – investment banking firm Morgan Stanley, estimate an increase in grocery shoppers buying online from 21% in 2015 to 34% in 2016.
Capitalizing on the growing need for convenient grocery shopping options, InstaShop has been made available through both Android and iOS, allowing customers to have groceries delivered to their doorstep in as fast as 30 minutes. Users of the app simply choose their products, select their delivery location and pay either via credit card or choose the cash on delivery option.
Ronaldo Mouchawar, CEO & Co-Founder, Souq.com, commented: “Millennials are leading the online grocery shopping revolution across many parts of the world, as they increasingly opt for the stress-free and time saving convenience of online shopping. InstaShop has a strong concept and platform in its own right, but by utilising our leading logistics app, it is looking to further grow its presence in Dubai and the other emirates. We will also be empowering the business with access to Souq.com’s customer base and technology.”
The investment in InstaShop comes shortly after Souq.com recently announced investments in Wing.ae and helpbit.com. These new partnerships form part of its drive to support SMEs in the region as well as to create an integrated network to provide a world-class online shopping, delivery and after sale service experience for customers.
Asif Keshodia, CFO of Souq.com, said: “InstaShop and our other recent investments will open new growth opportunities for us in the region and will help us to take Souq.com to the next level by consistently growing fast and expanding our Souq.com franchise in the region.”