India’s most popular online cab aggregator Ola announced its partnership with Germany-based Delivery Hero Group that owns Foodpanda’s India business. The deal includes the transfer of Foodpanda’s India business in exchange for Ola shares.
OLA – FOODPANDA INDIA
According to the sources, Ola has committed to invest a whopping amount of $200 million into Foodpanda India business – which is the largest fund investment in an Indian online food ordering and delivery industry till date. With this collaboration, Ola aims to build online food delivery ecosystem in India.
Hailing about deal Bhavish Aggarwal, Co-founder, and CEO at Ola, said in a statement.
I’m 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. With Delivery Hero’s global leadership and Ola’s platform capabilities with unique local insights, this partnership is born out of strength.
Saurabh Kochhar, who was the CEO of Foodpanda India has decided to move out of the company to pursue other business. Meanwhile, Pranay Jivrajka, the founding partner at Ola, will serve as interim CEO of this business until a replacement is found. He will be working with the existing management of Foodpanda India.
Currently, Foodpanda has a chain of 15,000 restaurant partners in over 100 cities. As per the reports, Foodpanda has obtained a revenue of INR 62.16 Crore in FY 2016-17 i.e. 64% more in contrast to the FY 2015-16 that gathered INR 37.81 crore.
Niklas Östberg, Chief Executive Officer and Co-founder of Delivery Hero AG, 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.