Souq.com, the largest online marketplace platform in the region, has 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, estimates an increase in grocery shoppers buying online from 21 per cent in 2015 to 34 per cent in 2016.

Capitalising 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 and co-founder, Souq.com, said: “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.

Mouchawar continued; “We're committed to the development of e-commerce in this region which includes constantly adding new offerings to make online shopping as enjoyable and seamless as possible. Souq.com has a lot of responsibility as a local brand to deliver on its promises, not just to users but also to the larger ecosystem of entrepreneurship and technology.”

Asif Keshodia, CFO, Souq.com commented “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.”

John Tsioris, Founder and CEO, InstaShop said: "The partnership announced today is a major milestone for Instashop. Our team is very excited to join forces with Souq.com and leverage its tools and customer base to accelerate our already strong growth in the UAE and to speed up our expansion in the Mena region. Besides domestic growth and international expansion, the funding will be invested in technological innovation and process optimisation to ensure that our users enjoy a continuously enhanced experience.”

The fast growing InstaShop platform wants to grant their customers with the gift of time, as it allows them to spend time on more productive and rewarding activities. The 5-minute online grocery shopping task vs. traditional way of shopping is becoming increasingly popular as millennials are extremely busy and prefer the convenience of ordering their groceries online, as they can perform this errand from the comfort of their home or on the go. - TradeArabia News Service