App-based Cab Aggregator Ola announced the purchase of Foodpanda India Business from Germany-based Global Online Food Ordering and Hero’s Delivery Group. This deal will be done in approximately $ 200 million (Rs. 1300 crore). Ola’s founder partner, Pranay Jivrajka has been appointed as Interim CEO of this Business Unit. Ola Co-Founder and CEO, Bhavish Agrawal said, “Our commitment to investing $ 200 million in Foodpanda India will help in focusing on growth by creating value for customers and partners. This partnership will be in the interest of the Consumers, with the capabilities of Delivery Hero’s Global Leadership and Ola.
The company also said that Pranay Jivrajka will be Interim CEO. Apart from this, the current Leadership Team of Foodpanda India will continue to cooperate. Ola said in a statement, “Until recently, Saurabh Kochhar, who was CEO of Foodpanda India, decided to the departure from the company.”
Delivery Hero’s chief executive officer and co-founder, Niklas Östberg said, “Partnership with Ola will help us to strengthen the hold on the market, where it strategically makes sense to collaborate with leading local players. At the same time, we consider our steak as a valuable asset in Ola, while the investment commitment of Ola’s Foodpanda India is clear and this is a good sign for the Indian market.
More than 15,000 restaurants are registered in more than 100 cities of India on the platform of Foodpanda. Its revenue was Rs 62.16 crore in 2016-17, which was Rs 37.81 crore in the previous financial year. Foodpanda suffered a loss of Rs 142.64 crore in 2015-16, which dropped 69 percent in the year 2016-17 to Rs 44.81 crore. The company had said that its goal is to be benefited till 2019.
Also, in 2014 Ola has entered the food delivery business with Ola Café. which was later closed. But now by purchasing Foodpanda India Business, the competition has begun again in this segment.