foodpanda

Rocket Internet-backed FoodPanda has acquired Delivery Hero-backed online food ordering service TastyKhana for an undisclosed amount.

The terms of the acquisition were not disclosed but this seems to be a part of a series of acquisition deals signed between FoodPanda and Delivery Hero. As part of these deals, FoodPanda has acquired Delivery Hero’s Mexican business of PedidosYa, SeMeAntoja and Superantojo along with TastyKhana while Delivery Hero has acquired FoodPanda’s affliate brand Hellofood in Argentina, Chile, Colombia, Ecuador and Peru.

TastyKhana logo

FoodPanda mentions that TastyKhana will remain an independent brand and both together will have tie-ups with over 10,000 restaurants across 173 cities in India.

Pune-based TastyKhana was launched in 2007 and had received more than $5 million investment from Delivery Hero in June last year. It currently claims to have tie-ups with more than 9,000 restaurants across cities like Pune, Mumbai, Bangalore, Gurgaon, Delhi, Noida, and Faridabad among others.

On the other hand, FoodPanda which launched its Indian operations in June 2012, seems to have scaled up quite slowly. It claims to have tie-ups with more than 4,000 restaurants across 30 cities in India.

This is probably due to the logistical challenges raised by the immediacy nature of the business and more importantly, the hesitation of restaurants to offer online ordering services in the country. In an interview with Medianama last year, JustEat India had mentioned that they hadn’t been able to scale up their operations as per expectations:

“We initially thought that we know Bangalore because we have been around. But when we launched in Bangalore and Mumbai, we realized that this business is not a cake walk. The problems double when orders go up. All orders are concentrated in the same one hour during lunch and dinner and we need to process it to restaurants in 1 minute and they have to deliver the food within 30 minutes. In traditional e-commerce, they can time to deliver a book in 2 or 3 days. But if we are late by 5 minutes in delivering food, customers become angry. That’s when we realized that we need to automate everything without human intervention to make things faster and smoother” More on that here and here.

That being said, it’s worth noting that FoodPanda has raised two rounds of investment in the past year – $60 million from a group of investors including Rocket Internet AG & Falcon Edge Capital in August this year and $20 million from a group of investors including Phenomen Ventures in February this year.

Last week, Ant Farm* also acquired a food delivery service Meals on Wheels to enter the online food delivery segment while JustDial had also introduced online food delivery service in August last year.

*Disclosure: Ant Farm is an advertiser with Medianama