Perhaps the greatest merger news of the year has arrived as we nearing towards the end of it. Ola, being run by ANI Technologies, Pvt.Ltd, has acquired food delivery start-up Foodpanda India from its present, German parent Delivery Hero AG in an all-stock deal that would lead the former infuse $200 million in Foodpanda India’s operations.
As per this deal, Foodpanda’s India business would be transferred to Ola in an exchange with the latter’s stocks. However, further details of this deal have not been disclosed.
This acquisition is quite a significant one owing to the fact that this marks Ola’s entry into the online food ordering and delivery genre, a booming business in India, largely shaped by the likes of Swiggy and Zomato and of course, the segment where Ola’s biggest rival, Uber Technologies Inc, has been trying its luck with the UberEATS. Previously, even Ola had tested this with the thing called Ola Cafe in 2014, but the unit couldn’t be a long-lasting one.
As per the recent statements by Ola, this collaboration between Ola and Foodpanda India would unlock the power of a partnership that would further help Foodpanda India grow as the most preferred online food delivery service in the country.
Bhavish Aggarwal, co-founder and chief executive at Ola, added to this that, “Our commitment to investing $200 million 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”.
With this, the ride-hailing app, also, announced the departure of Saurabh Kochhar, who headed Foodpanda India as its CEO until recently. Pranay Jivrajka, a founding partner at Ola, has been declared the interim CEO of the business unit in his place.
Lastly, this deal arrived months after Bengaluru-based Ola raised $1.1 billion i.e. around Rs. 7,000 crores from SoftBank Group and Tencent Holdings to strengthen its position in India.