Germany-based online ordering food service Delivery Hero invested an undisclosed but “substantial” amount in Korea-based online food ordering site Baedaltong on Tuesday.
Baedaltong launched in 2010 and has grown its user base to around 11 million. They can order food from some 150,000 restaurants across Korea using a “click to call and order” button.
Delivery Hero had already entered the Korean market with its own YoGiYo app, which processes a million orders a month.
Delivery Hero will seek to leverage the investment in Baedaltong to strengthen its position in the Korean market. YoGiYo and Baedaltong will continue to operate as separate entities.
Niklas Östberg, chief executive of Delivery Hero, said: “We are deeply impressed with the results achieved by Baedaltong: they have achieved an increase of 258% in net revenue and an increase of 53% in net profit compared with the previous year. We are very much looking forward to a close, long and mutually beneficial relationship with Baedaltong.”
The announcement follows a $350m series G round raised by Delivery Hero in September 2014. Delivery Hero has raised more than $635m to date and its corporate investors include retail group Tengelmann and publisher Georg von Holtzbrinck.