Online food ordering service Delivery Hero agreed on Saturday to acquire Germany-based rival FoodPanda for an undisclosed sum in a deal that provided an exit to e-commerce holding company Rocket Internet.
Rocket Internet, which owned a stake in Germany-based Delivery Hero through its Global Online Takeaway Group, will increase its share of the company to 37.7% as part of the deal.
The company had invested $586m in Delivery Hero as of March 2015, and Delivery Hero was valued at $3.1bn as of June the same year.
FoodPanda runs an online food delivery platform that operates in 22 countries, many of which are emerging markets, though it has cut back substantially from 2015 when it oversaw operations in 40 countries.
The purchase will enable FoodPanda to enter 20 new markets across Eastern Europe, Asia, Africa and the Middle East.
FoodPanda had raised approximately $318m in funding since being founded in 2012, securing $100m in a round led by investment bank Goldman Sachs in May 2015, just two months after raising $110m from backers including Rocket Internet, which provided $39m.
Oliver Samwer, chief executive of Rocket Internet, said: “The combination of FoodPanda and Delivery Hero, one of our most important companies, further consolidates key markets resulting in significantly improved market positions.
“Delivery Hero is also acquiring new markets with leading market positions further broadening its geographic footprint.”
Other investors set to exit through the deal include Imena Holdings, Falcon Edge Capital, Phenomen Ventures and Kinnevik.