Rocket Internet-backed food delivery service FoodPanda has acquired its biggest competitor in India, TastyKhana, in a deal that is believed to have valued the Pune-based venture between $15 million and $25 million (about 93-155 crore).
Delivery Hero, TastyKhana's primary backer, had invested $5 million in the venture in 2013.
Shachin Bharadwaj, founder and chief executive at TastyKhana, declined to comment on the deal specifics, which is believed to be a mix of cash and stock payout and is part of a series of acquisition deals signed between FoodPanda and Delivery Hero.
The deal sees Delivery Hero exiting the Indian food services market to focus more on growth markets such including Latin America and Europe. The Germany-based network of online food ordering platforms has acquired FoodPanda's affiliate brand Hellofood in Argentina, Chile, Colombia, Ecuador and Peru.
"Latin America holds a central role in our long-term strategy. With these acquisitions, we further extend our leading position in a region with tremendous growth," said Niklas Ostberg, CEO of Delivery Hero Holding.
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 Deals last week.
According to the terms of the transaction, TastyKhana, which has tied up with about 10,000 restaurants, spread across more than 170 cities will continue to operate as an independent brand.
Apart from TastyKhana, FoodPanda has also acquired DeliveryHero's Mexican food delivery businesses including PedidosYa, SeMeAntoja and Superantojo.
"The acquisitions allow us to extend our market leadership in India and improve our strong position in Mexico," said Ralf Wenzel, co-founder and managing director of FoodPanda group.
Founded in 2007 by Bharadwaj and Sheldon D'souza, TastyKhana has tied up with a number of leading food and beverages brands including Domino's Pizza and Mast Kalandar. The acquisition comes about three months after FoodPanda raised $60 million in a new round of funding, led by hedge fund Falcon Edge Capital. FoodPanda is currently active in 38 countries across the globe.
Related Tags:Rocket Internet, food delivery service, FoodPanda, competitor in India, Indian food services