Ola Acquired Foodpanda India Business, Pumps In US$200Mn To Expand
Ride sharing platform, Ola, has acquired Foodpanda’s India business from its parent company DeliveryHero (Berlin-based DeliveryHero acquired Foodpanda from Rocket Internet at the end of last year) in exchange for Ola stock announced today.
The company also announced it will invest $200 million (approximately Rs. 1,282 crores) into Foodpanda’s India business over an undisclosed period of time.
Saurabh Kochhar, who was the CEO of Foodpanda India until recently has decided to move on to pursue other opportunities, the company said, adding that Pranay Jivrajka, Founding Partner at Ola, has been appointed as interim CEO of this business unit.
Ola rival Uber already offers UberEATS online meal ordering and delivery platform, and with Foodpanda acquisition, one can expect Ola to offer a similar service within its app. The company had recently announced a tie-up with Zomato to enable food via from its in-car Ola Play platform.
“As one of India’s pioneers in the food delivery space, Foodpanda has come to be a very efficient and profit-focused business over the last couple of years,” Bhavish Aggarwal, Co-Founder and CEO at Ola said. “With Delivery Hero’s global leadership and Ola’s platform capabilities with unique local insights, this partnership is born out of strength.”
Foodpanda isn’t Ola’s first move into food. A previous dalliance — pilot project Ola Cafe — shut down in 2016 less than a year after operating in a handful of tier-one cities.