foodpanda and Delivery Hero acquire each other's subsidiary companiesAlok Soni
Global online food delivery marketplaces foodpanda and Delivery Hero today announce a series of separate acquisition deals. The acquisitions enable both companies to optimize their international growth strategy.
The announcement comes three months after foodpanda's recent funding round of $60 million. The company had raised $20 million in 2013. After the latest funding, Rohit Chadda, MD & Co-founder of foodpanda had said,
We plan to use these funds to further consolidate our position as the market leader and continue our growth in the existing markets while further improving our customer experience.
The latest announcement testifies the consolidation mentioned in above statement as the company initiates the series of acquisition in India, Mexico and Latin America.
Acquisition No. 1
foodpanda takes over Delivery Hero's TastyKhana in India, which was started in 2007. TastyKhana has been one of the first food delivery portals in India. As a part of the deal, TastyKhana will remain an independent brand. Together, foodpanda and TastyKhana will partner with over 10,000 restaurants in India, covering over 173 cities.
It was only an year and a half back, that Pune-based TastyKhana.com had announced its partnership with Delivery Hero. Delivery Hero had then shared its plans to invest more than 5 million USD in TastyKhana to help strengthen its position in the Indian market.
Acquisition No. 2
foodpanda also acquires the Mexican food delivery businesses PedidosYa, SeMeAntoja and Superantojo and targets market leadership in Mexico. The group has been has been operating in the Mexican market since December 2012 under the hellofood brand. After the acquisitions, Mexican customers in 10 cities will have the selection from over 2,500 restaurants.
Acquisition No. 3
Delivery Hero acquires the fodpanda's hellofood businesses in Argentina, Chile, Colombia, Ecuador and Peru, and captures its market leading position in these markets, aggregating 17,500 restaurants across eleven countries in Latin America, including Argentina, Brazil, Chile, Colombia, Ecuador, Panama, Paraguay, Peru, Puerto Rico, Uruguay and Venezuela.
foodpanda is now active in 38 countries on five continents. The company enables restaurants to become visible in the online and mobile world and provides them with a constantly evolving online technology. Ralf Wenzel, Co-Founder and Managing Director of foodpanda group said,
The acquisitions allow us to extend our market leadership in India and improve our strong position in Mexico. Combined with our efforts in other important markets such as Russia, Brazil and South East Asia, where we already gained a leading position, we are best positioned to accelerate growth and become the ‘Amazon’ of food ordering in emerging markets.
Delivery Hero is a global network of online food ordering platforms with more than 75,000 partner restaurants worldwide and over 1000 employees in 23 countries, including 440 in its Berlin headquarters. Investors in the company include among others Insight Venture Partners, Kite Ventures, Team Europe, ru-Net, Tengelmann Ventures, Point Nine Capital, Phenomen Ventures and Vostok Nafta. Niklas Östberg, CEO of Delivery Hero Holding said,
Latin America holds a central role in our long-term strategy. With these acquisitions we further extend our leading position in a region with tremendous growth.
Currently, foodpanda operates in India, Thailand, Indonesia, Pakistan, Singapore, Malaysia, Brunei, Vietnam, Taiwan, Bangladesh, Kazakhstan, Azerbaijan, Hong Kong, Philippines, Russia, Poland, Ukraine, Hungary, Romania, Bulgaria, Georgia and Serbia; while hellofood operates in Brazil, Mexico, Saudi Arabia, Jordan, Lebanon, Qatar, Egypt, Nigeria, Morocco, Kenya, Ghana, Senegal, Ivory Coast, Rwanda, Tanzania, Uganda and Algeria. Delivery Club operates in Russia.