In an all-stock deal, Rocket Internet-backed Foodpanda bought food ordering portal JustEat India. This is one of seven food delivery start-ups Foodpanda bought across Asia, a move aimed at strengthening its presence in India. Renouncing its majority stake in its India entity in November 2013 to 49.9 percent; UK-based JustEat will acquire an undisclosed stake in the combined Indian entity, which will be India's largest food-ordering provider with a presence in more than 200 cities across 12,000 restaurants. In exchange to the sale, Just Eat receives a minority holding in Foodpanda.in with the latter assuming full ownership of JustEat India.
Foodpanda has raised at least 100 million dollars since its launch in 2012 whereas Zomato, launched in 2008, has raised close to 113 million dollars and is expected to leverage its listings of about 50,000 restaurants in India by building its own ordering platform globally and is posing the biggest challenge to Foodpanda.
In a deal estimated to be between 15-20 million dollars in November last year, FoodPanda acquired TastyKhana. After acquiring City Delivery in Philippines, Room Service in Malaysia, Koziness in HongKong and Eat Oye in Pakistan as part of a larger Asia strategy, Foodpanda is looking to operate JustEat India as a separate company for the time being.
"These are exciting times for us. There has been a tremendous response to our brand and service, and with this acquisition. JustEat had a very strong play in the South Indian market. Where we operate in the world, our aim is to be the undisputed leader in that country. This buyout is geared towards that strategy," co-founder and managing director, Foodpanda, Rohit Chadda, said. He also added that "The company may not look at more acquisitions in the country now, as it sees no other significant players in the market."
JustEat, TastyKhana and Foodpanda are likely to be merged under a single entity in India, according to a source aware of the group's plans.
"The larger idea behind consolidation in various markets by Rocket Internet is to have an IPO for its food-delivery business, which may be valued at between $2 billion and $2.5 billion next year," said a person familiar with the group's plans.
The online food services market is valued at over $14 billion (about Rs 86,600 crore) in India and $371 billion globally.
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