Ola acquires Foodpanda’s India business from German parent

Ola, run by ANI Technologies Pvt. Ltd, has acquired Foodpanda India from its German parent Delivery Hero AG in an all-stock deal under which the ride-hailing company will infuse $200 million in the food delivery start-up’s Indian operations.

Under the deal, Foodpanda’s India business will be transferred to Ola in exchange for stock in the latter.

The share-swap arrangement and details of the transaction were not disclosed.

The deal marks Ola’s entry into the online food ordering and delivery segment, a business shaped in India by the likes of Zomato and Swiggy, and one in which Ola’s biggest rival, Uber Technologies Inc., has been making strides recently through its unit UberEATS.

Ola too tested what it called Ola Cafe in 2014, but shut down the unit shortly after.

“Our commitment to invest $200mn 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,” said Bhavish Aggarwal, co-founder and chief executive officer (CEO) at Ola. The deal comes months after Ola raised a $1.1 billion round (another $1 billion is likely to come in soon) from SoftBank Group and Tencent Holdings.