German online food ordering and delivery marketplace Delivery Hero Group’s foodpanda India business will be acquired by Ola, an India-based online transport service owned by ANI Technologies.
Under the agreement between the companies, Delivery Hero will sell foodpanda India in return for an undisclosed equity stake in Ola.
In addition, Ola has committed to invest $200m in foodpanda India to focus on its future growth.
Delivery Hero CEO Niklas Östberg said: “The partnership with Ola will allow us to further consolidate markets where it strategically makes sense to collaborate with leading local players.
“At the same time, we consider our stake in Ola as a very valuable asset, while Ola’s investment commitment in Foodpanda India is a clear and confident signal to the Indian market.”
Ola CEO and co-founder Bhavish Aggarwal said: With Delivery Hero’s global leadership and Ola’s platform capabilities with unique local insights, this partnership is born out of strength.”
In December 2016, Delivery Hero acquired foodpanda and its Indian subsidiary. Foodpanda has a network of over 15,000 restaurants across 100 Indian cities.
The India unit contributed 1.9% of total segment revenues for the first nine months of 2017 to Delivery Hero’s overall business.
Delivery Hero has online and mobile platforms across more than 40 countries in Europe, the Middle East & North Africa (MENA), Latin America and the Asia-Pacific region.
It operates its own delivery service primarily in over 60 high-density urban areas around the world.