Ola is issuing 3,793 Series J2 CCPS to Delivery Hero in lieu of cash consideration against acquisition of 77,10,564 equity shares held by Delivery Hero in foodpanda
In December of 2017, Ola had announced the acquisition of foodpanda from Delivery Hero for approx $200 Mn
The development comes a couple of months after it had raised $500 Mn in a TLB debt round
ANI Technologies which operates mobility giant Ola along with quick commerce delivery platform Ola Dash and cloud kitchen services Ola Foods has completed its acquisition of once popular food delivery aggregator foodpanda from Germany-based Delivery Hero (India).
In an extraordinary general meeting dated February 5, 2022, shareholders of Ola offered to issue 3,793 Series J2 CCPS to Delivery Hero for INR 8.5 Cr.
Ola in its regulatory filings mentioned that in order to acquire 100% of the share capital in foodpanda, it is issuing 3,793 Series J2 CCPS to Delivery Hero in lieu of of cash consideration against acquisition of 77,10,564 equity shares held by Delivery Hero in foodpanda. Delivery Hero is the German parent company of foodpanda.
In December of 2017, Ola had announced the acquisition of foodpanda from Delivery Hero for approx $200 Mn in order to strengthen its food delivery business.
Ola which initially started as a cab hailing service in 2010, soon forayed into multiple businesses such as grocery delivery, food delivery, among others that relied on its fleet businesses. Besides, Ola Electric, which is a separate entity.
Ola first showed its interest in food delivery back in 2015 when it started Ola Cafe. The startup had initially launched its services in metropolitan cities such as Delhi, Mumbai, Bengaluru, and Hyderabad.
Later the mobility giant acquired foodpanda to strengthen its food delivery services. In 2019, it launched its cloud kitchen services with its flagship brand Khichdi Experiment. Later on it has expanded its cloud kitchen portfolio by launching more brands such as The Biryani Experiment, Paratha Experiment, The Daily Diner, Nashtha Express, The Pizza Place, among others.
While Ola is yet to mark a dent in the food delivery industry which witnessed a duopoly of listed Zomato and IPO-bound Swiggy, through its cloud kitchens it has gained some traction and has put up a fight against Swiggy’s and Curefoods’ cloud kitchens.
Ola is aggressively rooting for its quick commerce business too. The mobility giant launched its quick commerce arm Ola Dash last year to take on Swiggy’s Instamart, and Zomato-backed Blinkit, new entrant Zepto, and Reliance backed Dunzo.
In lines with its IPO plans, Ola has also raised $500 Mn in TLB debt round. A startup ideally raises TLB funds to increase its market presence both domestically and internationally.
Bhavish Aggarawal had disclosed IPO plans for both of its major businesses – Ola and Ola Electric in an interview last year.