Ola Acquires Foodpanda India, will Invest $200 Million
Popular riding App Ola has announced a partnership with Germany-based Delivery Hero Group, an online food ordering and delivery marketplace. The partnership involves the transfer of Foodpanda’s Indian business in exchange for an undisclosed amount Ola shares.
Both Ola and Delivery Hero will work together in building the online food delivery ecosystem in India. Ola has committed to invest $200million in Foodpanda India business. It says that this is till now the largest fund investment in India’s food delivery business. Furthermore, the company has announced that Saurabh Kochhar, who was the CEO of Foodpanda, has decided to quit the company, and Ola’s founding partner Pranay Jivrajka will serve as the interim CEO of this businesa until a replacement is found. Foodpanda currently declared that it has 15,000 restaurant partners in over 100 cities.
“I am excited about our partnership with Delivery Hero as we team up to take Foodpanda India to the next level. 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. Our commitment to invest $200mn in Foodpanda India will help the business be focused on growth by creating value for customers and partners,” said Bhavish Aggarwal, Co-founder, and CEO at Ola.
He also added, “With Delivery Hero’s global leadership and Ola’s platform capabilities with unique local insights, this partnership is born out of strength. I look forward to welcoming the Foodpanda India team to the Ola family. I also thank Saurabh Kochhar for building a wonderful team at Foodpanda India over the last couple of years and wish him the very best in his new endeavours.”