The all-stock purchase is the second in four months by Foodpanda, which in November acquired TastyKhana.in
New Delhi: Online food delivery marketplace Foodpanda.in said on Friday that is had acquired food ordering portal Just Eat India in an all-stock deal as it seeks to strengthen its presence in India.
Just Eat Plc., the largest shareholder in Achindra Online Marketing Pvt. Ltd that runs Just eat India, will receive a minority stake in Foodpanda.in as part of the deal, whose valuation wasn’t disclosed. Foodpanda will assume full ownership of Just Eat India, the company said in a statement.
Gurgaon-based Foodpanda is backed by Berlin’s Rocket Internet AG, an e-commerce-focused venture capital firm and start-up incubator. The purchase is the second in four months by the company, which in November acquired food delivery business TastyKhana.in for an undisclosed amount. The latest deal comes in at a time when restaurant search portal Zomato is looking to enter the online food ordering space in India.
“We have a very clear focus of being the largest player in every country that we operate in. Though we were already a dominant player, this will further help consolidate our position as a leader," Rohit Chadda, co-founder and managing director at Foodpanda, said .
According to Chadda, the two companies will continue to operate independently and the Just Eat brand will continue to exist separately.
He does not rule out an integration of the two platforms going forward. “I can’t rule it out and we will take a decision in due course of time. As of today, we will keep the brands and teams separate," he added.
Just Eat Plc. was launched in Denmark in 2001 and was traded publicly on the London Stock Exchange. It entered India by acquiring a majority stake in Hungry in Bengaluru in 2011. Hungry was launched in 2006.
Today, the company partners with more than 2,000 restaurants.
“Foodpanda has built a great company in India and around the globe and we are very excited to partner with them going forward. We believe that we can combine (to) bring an even better service to our customers in India," said Ritesh Dwivedy, chief executive, Just Eat India.
Foodpanda.in, which launched in India in May 2012, operates in 39 countries across five continents. Together with TastyKhana and Just Eat, the brand is present in more than 200 cities and partners over 12,000 restaurants, the company said in a statement.
According to Chadda, the online food ordering business in India is in its nascent stage. “Share of online food ordering would be in single digits of the overall food ordering business which in 2014 was estimated to be around ₹ 5,000-6,000 crore. We are growing at 20-30% month-on-month," he added.
The company currently gets more than 100,000 unique visitors daily on its platform.
In August last year, Foodpanda raised $60 million in new financing from a group of investors and existing backer Rocket Internet.