Rocket Internet’s international online food delivery service Delivery Hero has acquired brother company Foodpanda for an undisclosed amount. The acquisition will help Delivery Hero consolidate key markets, further its geographic footprint and reduce complexity at the group level.
The Foodpanda acquisition will let Delivery Hero expand to 20 countries including those in Europe, MENA and Asia. It will be funded by issuing new shares in Delivery Hero to Foodpanda shareholders. Rocket Internet will now own 37.7% of Delivery Hero, up from 37.3% this May. Since last December, Rocket Internet owns 49.1% stake in Foodpanda.
It is unclear if the merger of the businesses will lead to one app and whether Foodpanda will retain its identity across its markets or function under Delivery Hero. As of March this year, Foodpanda had $100 million in cash reserves.
A TechCrunch report states that Delivery Hero and Foodpanda combined are expected to process 20 million orders monthly across 47 countries. Delivery Hero processes 2 million orders across its 22 countries of operation.
Delivery Hero bought some of Foodpanda’s brands and vice versa
It’s not that Delivery Hero and Foodpanda don’t share history: In 2013, Delivery Hero had invested $5 million in Pune based online food ordering startup TastyKhana. One and a half years following this, Foodpanda acquired TastyKhana in November 2014. At this time, Foodpanda also acquired Delivery Hero’s Mexican businesses PedidosYa, SeMeAntoja and Superantojo and Donesi.com in Serbia, Montenegro, Bosnia and Herzegovina, as well as Pauza.hr in Crotia and NetPincer in Hungary to expand its presence in Europe. Meanwhile, Delivery Hero acquired Foodpanda’s affiliate brand Hellofood in Argentina, Chile, Colombia, Ecuador and Peru.
Rocket Internet’s Global Online Takeaway Group
In February last year, Rocket Internet acquired a 30% stake in Delivery Hero for $586 million, along with 100% acquisitions of La Nevera Roja in Spain and Pizzabo in Italy for undisclosed amounts. At this time, it formed the Global Online Takeaway Group, comprising all of its online food delivery companies.
In the same month, Foodpanda took over JustEat’s India operations. The company 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.
Foodpanda India financials:
Foodpanda launched in India in June 2012. For FY 2015-16, Foodpanda reported revenues of Rs 37.81 crore, up 704.4% from Rs 4.7 crore in 2014-15. It also reported losses of Rs 142.6 crore for 2015-16, increasing from Rs 36 crore in 2014-15.
Globally, Foodpanda reported revenues of $13.15 million in Q2 2016, up by 64.8% YOY from $7.98 million in Q2 2015. In the same quarter, the company delivered 7.6 million orders, up 66.1% YOY from 4.5 million orders in Q2 2015.