Rocket Internet, the public listed German ‘startup factory’, has sold its one of the most known startup — Foodpanda to its bigger rival Delivery Hero. This acquisition should now fatten up Delivery Hero a little bit more before its eventual Initial Pubic Offering (IPO).
The financial details related to this acquisition deal remains undisclosed. However, it is known that it will be funded through issuance of new shares in Delivery Hero to existing Foodpanda shareholders. Delivery Hero says foodpanda will enable it to consolidate its market leadership position in the Middle East.
It must be noted that Rocket Internet is also an investor in Delivery Hero. As a result of this acquisition deal, Rocket Internet will increase its ownership in Delivery Hero to 37.7 per cent on a fully diluted basis post transaction. The deal is expected to close by the end of this year.
Now, Delivery Hero, which is currently valued at over $3.1 billion, competes directly with publicly-listed Just Eat, along with newer premium startups such as Deliveroo, Uber Eats and Amazon. The company says that the acquisition strengthens its “global leadership position” in online food ordering and delivery.
With the acquisition, Foodpanda will now add 20 new countries in Eastern Europe, MENA and Asia to Delivery Hero’s platform. The company currently claims to be processing approx. 2 million monthly orders across the 22 countries it operates in, claiming to be the market leader in 17 of them.