Online food ordering and delivery company Foodpanda has raised $100 million funding led by Goldman Sachs, with participation from existing investors Rocket Internet. The funds will be used to expand its delivery activities and improve overall customer experience across the 40 markets it’s operational in.
Foodpanda has so far raised $310 million since it was launched in 2012. This includes $110 million raised from Rocket Internet and other new and existing investors in March this year, $60 million from Rocket Internet and Falcon Edge Capital in August last year, $20 million from Phenomen Ventures in February last year, and $20 million from AB Kinnevik and Phenomen Ventures in May 2013.
Last month, the company forayed into the food delivery space by launching in Bangalore, Delhi, Hyderabad, Mumbai and Pune. Foodpanda plans to expand the service to 7 other cities over the next 3-6 months, though it didn’t name any specific city. At the time, Foodpanda CEO Saurabh Kochhar had claimed that already 20% of the orders received by them in these 5 cities opt for the delivery service.
Foodpanda had taken over JustEast’s India operations, in February this year. Food ordering service Tastykhana, which was acquired by Foodpanda in November last year, is also expected to be soon merged into Foodpanda.
Online food ordering & delivery segment gaining momentum
Zomato, which is expected to soon launch a food delivery service, launched online food ordering in Delhi , last month. Earlier this year, Zomato CEO Deepinder Goyal had said in a company concall that they’re likely to introduce delivery services on their own and partner with third-party service providers as well. Later, during a Reddit AMA, he mentioned that Zomato’s delivery service will launch by the end of March, starting with Delhi, Mumbai and Bangalore.
In March this year, Ola launched a food delivery service called OlaCafe for users to order food from nearby restaurants using the Ola app. The service is available in parts of Bangalore, Hyderabad, Delhi and Mumbai and users can pay either via Ola money or through cash. The company claims a delivery time of 20 minutes.
In November last year, former Times Internet CEO Rishi Khiani’s AntFarm had acquired the food delivery service Meals on Wheels. The company then launched a redesigned version of Meals On Wheels website that allows users to search for their preferred restaurants, cuisines or dishes and place orders.