Homegrown cab aggregator Ola acquired Foodpanda India from Germany-based Delivery Hero Group for $31.7 Mn (INR 202 Cr). As per its filings with the Ministry of Corporate Affairs, Ola parent ANI Technologies issued preference shares worth $4.4 Mn (INR 28 Cr) last month to Pisces eServices, the Indian company that operates Foodpanda.
While the companies did not disclose the details of the deal size, sources at the time had pegged the stock-based acquisition at under $50 Mn. This deal included the transfer of Foodpanda’s India business to the cab aggregator in an acquisition deal in exchange for Ola stock.
As part of the deal, Delivery Hero reportedly invested $27.3 Mn (INR 174 Cr) in SoftBank-backed Ola, thereby acquiring 1% stake in the ride-hailing unicorn. Ola, in turn, infused the $27.3 Mn from Delivery Hero into Foodpanda India, in a bid to bolster its business.
At the time of the announcement, Ola also committed to investing $200 Mn in Foodpanda India. However, it seems that the $27.3 Mn capital infusion in the foodtech startup was not part of the proposed investment.
According to a senior Ola executive, the deal was more than just the acquisition of Foodpanda by Ola. It was mainly about DeliveryHero and ANI Technologies joining hands to strengthen the food delivery platform’s business in India.