1. Foodpanda gets $431 mn fund infusion from Naspers

Foodpanda gets $431 mn fund infusion from Naspers

Although businesses may not yet be breaking even just yet, investors continue to have an appetite for e-commerce ventures.

By: | New Delhi | Updated: May 23, 2017 8:26 AM
Foodpanda India has seen an infusion of 0 million since its inception in 2012, the majority of which was raised in 2015.

Although businesses may not yet be breaking even just yet, investors continue to have an appetite for e-commerce ventures. Food tech firm Foodpanda said on Monday, Naspers will invest $431.45 million in Delivery Hero, its parent company and the food ordering and delivery marketplace of German incubator Rocket Internet.

Foodpanda India has seen an infusion of $310 million since its inception in 2012, the majority of which was raised in 2015. In March 2015, Foodpanda mopped $100 million in a round led by Rocket Internet and another $100 million by Goldman Sachs later in the year.

Apart from India where it competes with Zomato and Swiggy, Foodpanda has a presence across 24 countries in Asia, the Gulf region and Eastern Europe. Exactly how much of the money will be funnelled into the India operations is not known.

Also Watch:

Naspers will be picking up a minority stake in Delivery Hero and will get a seat on its supervisory board. Other business which Naspers is invested in in India include Flipkart, Myntra, redBus, ibibo, OLX, and PayU.

Several food-tech start-ups in India have either shut shop or pruned their operations in the last two years after failing to generate adequate revenues. Zomato suspended food ordering in four cities while Foodpanda, Zomato and TinyOwl trimmed their workforces and Flipkart shut down the grocery delivery business Nearby in 2016. Ola Café shut shop

within in a year of operations unable to compete with bigger rivals such as Zomato and Swiggy. The latest entrant is Uber India’s UberEATS which started operations earlier this month in Mumbai. UberEATS allows users to order from any of 200 restaurants and track the order real-time for a delivery fee of Rs 15.

“Food ordering and delivery presents an attractive opportunity for us. It is a large, underpenetrated, and growing market with potential for success across a broad range of geographies that Naspers knows well. Delivery Hero has already achieved significant traction in some markets, but we believe that the vast majority of high-growth markets are at the beginning of the opportunity cycle,” Bob van Dijk, CEO of Naspers said.

In FY16, Delivery Hero clocked 171 million orders with a 62% growth in GMV to 2,324 euro, according to a filing by Rocket Internet. It reported a 79% increase in revenues to 297 euros. Foodpanda was acquired by Delivery Hero in December 2016 which increased Delivery Hero’s footprint to over 40 international markets. According to Jefferies, private internet companies raised only $2.7 billion in 2016 but close to $2 billion in the three months to March. Japan’s Softbank Group said recently it would infuse $1.4 billion in One97 Communications.

“We are constantly looking to strengthen and enhance our food ordering and delivery experience. We have made significant investments in technology and delivery ecosystem,”Saurabh Kochhar, CEO, Foodpanda India, said.

 

  1. Rahul Malik
    May 24, 2017 at 3:15 am
    Food panda is out of India. This is just to excite the compe ion for a buy out. False news..
    Reply

    Go to Top