German online food ordering and delivery marketplace Delivery Hero Group has agreed to purchase food delivery business from India-based Zomato Media in the UAE.
The agreement was entered through Delivery Hero’s fully owned subsidiary Talabat Middle East Internet Services.
This announcement follows recent reports regarding Zomato’s plans to raise a fund of $62.5m led by Delivery Hero.
The company plans to fund the deal through an acquisition facility, which is expected to add 1.2 million orders and $2m monthly revenue to its MENA business. The deal will also strengthen its presence in the UAE market.
Delivery Hero CEO Niklas Östberg said: “Zomato has built a successful food delivery business in the UAE and India on the back of its restaurant search and discovery app and website.
“The acquisition will allow us to further improve our service to customers in the UAE. We are also excited to become a shareholder in Zomato’s rapid food delivery growth story in India and share our learnings.”
In addition, Delivery Hero is planning to invest $50m in Zomato’s global business through a funding round to become a shareholder.
It will also sign a material operational partnership agreement with Zomato.
Zomato CEO Deepinder Goyal said: “I am delighted to welcome Delivery Hero as a partner and shareholder and look forward to learning from their global experience to help us strengthen our fast growing India food delivery business.”
Headquartered in Berlin, Delivery Hero operates a delivery service in more than 200 cities globally. It also operates online food ordering and delivery marketplaces across 41 countries.