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TastyKhana to merge into foodpanda five months after acquisition


Pune-based food ordering service TastyKhana, which was acquired by Rocket Internet-backed foodpanda last year, is soon to be merged into its parent company. Note that at the time of acquisition foodpanda had mentioned that TastyKhana would remain an independent brand, however it looks like the company has now changed its decision.

This announcement comes a few days after TastyKhana began displaying the foodpanda logo alongside its own on its homepage. The homepage currently also reads the merger message, “TastyKhana will soon be merged with foodpanda”. A mail was also sent out today to TastyKhana users by the company’s CEO informing them of this move. The mail reads:

It just gets better! – Important announcement from Tastykhana’s CEO

Hey foodie!

Thank you for your valuable patronage to Tastykhana. We appreciate all the support from you as Tastykhana has grown over last 8 years. In order to further improve your food ordering experience, we’ve joined hands with India’s largest food ordering portal: foodpanda.in.

On foodpanda, you can choose from 10,000+ restaurants across 100+ cities and avail exciting offers on your favourite delivery restaurants.

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It has been an incredible journey for TastyKhana that wouldn’t have been possible without your loyal support. We look forward to providing even better food ordering experience, now through foodpanda.in.

I am sure you may have certain queries with regards to this transition, we have covered the most important aspects on our FAQ page, for any other questions please write to us onwecare@tastykhana.com.

Thank you once again and we look forward to the panda now delivering you lot more tastykhana

Note that minimum order prices on foodpanda tend to be noticeably higher than on TastyKhana, in addition to the former charging for delivery from some restaurants as well. TastyKhana also tended to consistently offer unimaginably high discounts, for example it offered 30% off + 25% cashback end of last month and a 20% off + 25% cashback during Holi early this month. It looks like this was the plan all along, user acquisition through heavy discounting on TastyKhana, post which the users could be redirected to the lesser-money-burning foodpanda.


Left: TastyKhana, Right: FoodPanda; Same Restaurant

Just last month foodpanda revealed it also took over the UK-headquartered JustEat’s India operations sometime after it had acquired Delivery Hero-backed TastyKhana in November last year. While JustEat currently does not sport the foodpanda logo, we wonder if the same fate lies in store for the company in the near future.

TastyKhana was launched in 2007 and had received more than $5 million investment from Delivery Hero in June 2013. On the other hand foodpanda, which launched its Indian operations in June 2012, had raised $60 million from a group of investors including Rocket Internet AG & Falcon Edge Capital in August and $20 million from a group of investors including Phenomen Ventures in February last year.

Foodpanda acquisitions: Other than TastyKhana and JustEat, foodpanda had also acquired Food Runner operated Room Service in Malaysia and Singapore & City Delivery in the Philippines, as well as EatOye in Pakistan, Koziness in Hong Kong and Food By Phone in Thailand. The platform had also acquired Delivery Hero’s Mexican business of PedidosYa, SeMeAntoja and Superantojo along with TastyKhana.

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Rocket Internet has also acquired a 30% stake in Delivery Hero for $586 million, along with 100% acquisitions of La Nevera Roja (The Red Fridge) in Spain and Pizzabo in Italy for undisclosed amounts. At the same time Rocket Internet has formed the Global Online Takeaway Group, which will comprise of all the online food delivery companies that Rocket Internet has a stake in including foodpanda. The combined entity currently has a presence in 64 countries.

Recurring trend: It’s worth noting that Rocket Internet and its investor Kinnevik had merged all of its emerging markets focused fashion e-commerce brands, including Jabong in India, into one entity called Global Fashion Group, in September last year. The merged entities included Dafiti (Latin America), Lamoda (Russia & CIS), Namshi (Middle East) and Zalora (South East Asia & Australia), besides Jabong.

Corrigendum: Earlier the article incorrectly mentioned the food prices on foodpanda were higher than TastyKhana. Its the minimum order price that is higher.

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