Rocket Internet-backed food delivery service FoodPanda has acquired its biggest competitor in India, TastyKhana which is another online food-delivery service that partners with 10,000 restaurants in 173 cities, in India and is backed by Delivery Hero. Interestingly, Foodpanda and Delivery Hero are acquiring companies from each other in India, Mexico, and Latin America.
Germany-based Delivery Hero, the lead investor in TastyKhana, had invested $5 million in the venture in 2013.
The financials of the investment are not yet disclosed but is believed to be a mix of cash and stock payout, however, ET has reported that Delivery Hero might have earned returns of between $15 million and $25 million (Rs 93-155 crore).
The deal sees Delivery Hero exiting the Indian food services market, which is valued at about $14 billion, as well as other emerging geographies, and focus more on growth markets such as Latin America and Europe, among others.
This is the second buyout in India's fast burgeoning online food ordering space, following Mumbai-based digital media and consumer internet incubator Ant Farm's acquisition of Meals on Wheels last week.
Founded in 2007 by Shachin Bharadwaj and Sheldon D'souza, TastyKhana has tied up with a number of leading food and beverages brands.
Foodpanda is currently available in 38 countries, while Delivery Hero operates in 23 countries.
Along with Tastykhana, Foodpanda has acquired 3 more companies which were backed by Delivery Hero whereas Delivery Hero purchased businesses in Argentina, Chile, Colombia, Ecuador, and Peru from hellofood, a brand affiliated with Foodpanda.
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