Russia-based food delivery service Zakazaka has been acquired by internet company Mail.ru, an existing shareholder, in an all-cash transaction of $18m.
Mail.ru obtained the remaining 90.09% of shares in Zakazaka having already owned 9.91% through its acquisition of competing business and shareholder Delivery Club in November 2016, and an additional stake purchase in March 2017. The transaction values Zakazaka at $20m.
Zakazaka operates a food delivery service that has signed up 2,600 restaurants to date, reaching 126,000 orders in March 2017 primarily through a dedicated mobile app. The company claims to be number two in the Russian market.
The company’s product will be integrated into Mail.ru’s offering as the corporate aims to consolidate its leadership in the food delivery sector. The transaction is not subject to any third-party approval processes.
Ruslan Gafurov, co-founder of Zakazaka, said: “Our cooperation with Mail.ru allows for natural synergy; on [the] one hand, there is Mail.ru’s huge mobile audience and extensive experience in mobile segment; on the other hand, there is Zakazaka’s great retention rate, strong presence all around Russia and high purchase frequency.
“We are happy that the effort that went to competing with each other can now be redirected to achieving our common goal: making the food delivery market better and more accessible.”