Cab aggregator Ola is once again setting its foot into the food delivery space by acquiring Foodpanda India from Germany based Delivery Hero Group. Ola has also committed to invest $200 Mn in Foodpanda India.
While the companies did not disclose the details of the deal size, sources have pegged the stock-based acquisition at under $50 Mn. This deal includes the transfer of Foodpanda’s India business to Ola in an acquisition deal in exchange for Ola stock.
Bhavish Aggarwal, Co-founder and CEO at Ola, stated, “I’m excited about our partnership with Delivery Hero as we team up to take Foodpanda India to the next level. As one of India’s pioneers in the food delivery space, Foodpanda has come to be a very efficient and profit focused business over the last couple of years. Our commitment to invest $200 Mn in Foodpanda India will help the business be focused on growth by creating value for customers and partners. With Delivery Hero’s global leadership and Ola’s platform capabilities with unique local insights, this partnership is born out of strength. I look forward to welcoming the Foodpanda India team to the Ola family.”
Meanwhile, Saurabh Kochhar, former CEO of Foodpanda India has left the company and Pranay Jivrajka, founding partner at Ola has been appointed as the interim CEO of Foodpanda.
Ola, Foodpanda, And The Food Delivery Sector In India
Ola had earlier experimented with food delivery with its Ola Cafe in 2015, which did not take off that time and was shut down in March 2016. The acquisition of Foodpanda however will now see it pitted against the likes of rival UberEats and incumbents like Zomato and Swiggy.
Foodpanda currently has a network of 15000 restaurants across 150+ cities. In December 2016, parent Foodpanda was acquired by Delivery Hero, one of the leading global players in food ordering and delivery marketplace, which went public with a $ 1.1 Bn IPO in June 2017. In May this year, South African Internet and media conglomerate Naspers had invested about $435 Mn in Delivery Hero, a part of which was expected to pour in to strengthen its Indian business Foodpanda India.