Record-breaking tech IPO sees Talabat secure over $2 billion at a valuation of $10.2 billion, marking the year's largest global offering.
Talabat, a pioneering on-demand food delivery platform, was founded in Kuwait back in 2004. The company has since grown exponentially, becoming the largest online food ordering company in the Middle East and North Africa (MENA) region. In 2016, Talabat became a subsidiary of the German-based Delivery Hero group 1, solidifying its position in the global food delivery market.
As of September 2024, Talabat boasts an impressive user base of over 6 million active customers, more than 65,000 active partners (restaurants and vendors), and around 119,000 active delivery riders 2. This makes Talabat the largest food delivery service in MENA by user base, partners, and rider fleet.
The platform offers customers a convenient app-based ordering and delivery service, while Talabat riders enjoy flexible hours, transparent earnings, and safety benefits such as contactless delivery and insurance, in addition to other incentives 3.
Despite its large scale and market dominance, Talabat has faced labor-related controversies, including worker strikes in the UAE over pay and conditions in 2022. These incidents highlight ongoing challenges in gig economy labor practices in the Gulf region [4].
Looking ahead, Talabat is well-positioned to capitalize on the growing consumer demand for online food delivery in the MENA region. The market shows strong growth opportunities as platforms like Talabat increase average revenue per user (ARPU) and expand geographically. With its leading status and backing by Delivery Hero, Talabat is expected to continue innovating, scaling, and potentially driving further technological integration in the regional delivery ecosystem [2].
Talabat's 2024 Initial Public Offering (IPO) was a significant milestone, marking the largest global technology IPO of that year. The IPO saw significant interest from international, regional, and local investors, resulting in a double-digit oversubscription level. The offering raised $2.04 billion at an IPO price of AED 1.60 per share 5.
Headquartered in Dubai, Talabat serves over six million active customers, more than 65,000 participating restaurants and vendors, and approximately 119,000 riders across eight markets, including the UAE, Kuwait, Qatar, Bahrain, Egypt, Oman, Jordan, and Iraq 6. The IPO implies a market cap of $10.16 billion at listing for Talabat, with Delivery Hero retaining an 80% majority stake post-listing 7.
Talabat's IPO marks the largest global technology IPO in 2024 and the largest IPO in the Middle East & North Africa this year. The company's continued growth and innovation underscore its significant role in reshaping food delivery in MENA with promising future growth prospects.
In the realm of technology, Talabat's IPO in 2024, valued at $10.16 billion, was a testament to its significant growth and innovative approach in the food delivery business. Leveraging technology, Talabat offers an app-based service to over 6 million active customers, ensuring a seamless experience for users while faciliating work for its 119,000 delivery riders and 65,000 restaurant and vendor partners across the Middle East and North Africa (MENA) region.
