FoodPanda India, a subsidiary of Germany-based online food ordering platform FoodPanda that is itself owned by food delivery service Delivery Hero, agreed today to an acquisition by on-demand ride provider Ola.
India-based Ola is investing $200m into FoodPanda India as part of the deal. Delivery Hero, which bought FoodPanda in December 2016 for an undisclosed sum, will receive an equity stake of unspecified size in Ola.
Saurabh Kochhar, chief executive of FoodPanda India, has stepped down from the position, and Pranay Jivrajka, founding partner at Ola, has been appointed interim CEO.
FoodPanda India operates an online food ordering and delivery service, and has partnerships in place with more than 15,000 restaurants across more than 100 cities in India.
Ola said it expects FoodPanda India to benefit from its scale and efficients but did not clarify how exactly it intends to integrate the business into its existing offering. Ola and Delivery Hero will collaborate on building out the business.
Bhavish Aggarwal, co-founder and CEO of Ola, said: “Our commitment to invest $200m 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.”