Markets Delivery Hero to use Talabat IPO earnings to clear bonds By Neil Halligan February 13, 2025, 7:04 PM Max Threlfall/Delivery Hero The Berlin-based food delivery company, Delivery Hero, which bought Talabat in 2015, said it will pay off its convertible bonds Parent company uses proceeds Talabat’s listing brought in €1.8bn Monthly users increased 25% Delivery Hero is to buy back about €1 billion ($1 billion) in bonds using proceeds from last year’s Talabat IPO on the Dubai Financial Market. The Berlin-based food delivery company, which bought Talabat in 2015, said it will pay off its convertible bonds due in 2025 and 2026 and up to €350 million for 2027 bonds. Talabat’s public listing in December brought in €1.8 billion in net proceeds, Delivery Hero said in its Q4 results, where it announced revenues of €3.5 billion, up 31 percent on the same period last year. Talabat reported a 32 percent increase in fourth-quarter revenue of $801 million, which yielded a net profit of $138 million, up 54 percent from the same period last year. Full-year revenue reached $2.8 billion, up 32 percent from 2023, while net profit was $346 million, up 64 percent. UAE capital markets are well placed for a stellar year Strong post-IPO performance bodes well for Saudi flotations Mena delivery app Talabat outperforms its German parent The company’s broader gross merchandise value (GMV) – the total value paid by customers including VAT, delivery fees, other fees and subsidies – rose 23 percent during the year. The company said GMV growth was driven by stronger consumer demand through new customer acquisition and increased order frequency. Monthly users increased 25 percent and the average order frequency of active customers increased 8 percent year-on-year. Talabat’s profits increased due to increased earnings from delivery fees and its mart stores business, as well as improving operating efficiencies and its non-commission revenue, including advertising.
