Rocket Internet Acquires Majority Stake in Foodpanda

A leading investor in startups, Rocket Internet has acquired 52 percent stake in Foodpanda by heading a EUR 104 million (about Rs. 688 crores) funding round in the online food ordering site.

Rocket Internet announced a EUR 104 million funding round in Foodpanda to capitalise on the growth opportunity and allow for further selective investments in key markets.

"Rocket is participating with an investment of EUR 37 million in this funding round. It is purchasing additional shares from existing shareholders and has received shares formerly held through Latam Internet Group through a share dividend thus increasing its direct ownership stake in Foodpanda from below 50 percent to 52 percent," the investor said in a statement.

Besides, Rocket Internet AG other existing and new investors also participated in the funding round.

Confirming the development Foodpanda said with this fresh round it has now raised a total of over $200 million.

"After acquiring key competitors this year in India, Mexico, Russia, Brazil, Eastern Europe, Middle East and Asia, the firm will now further invest into product and technology, and continue focusing on customer service and loyalty," it said in a statement.

Foodpanda with its affiliate brand Hello Food is a leading delivery platform and are part of the Rocket Internet backed Global Online Takeaway Group which also includes Delivery Hero.

With this fresh round, the Berlin-based Rocket Internet acquired a 52 percent stake in Foodpanda, which has operations in India including 39 countries and has so far raised over $200 million (roughly Rs. 1,255 crores) globally.

Rocket Internet is also an investor in India's home grown online fashion retailer Jabong, online furniture seller Fabfurnish among a few others.

Founded in 2012, Foodpanda's investors include Phenomen Ventures, Investment AB Kinnevik and iMENA Holdings.

Rocket Internet CEO Oliver Samwer said: "Within the past weeks we have been able to build Global Online Takeaway Group into a truly global operation, being present in more than 70 countries."

Extending Rocket's stake in the fast growing Delivery Hero to almost 40 percent and increasing direct ownership in the emerging market focused Foodpanda are important steps in building the largest and truly global online takeaway marketplace in the world, he added.

Earlier this year, Foodpanda acquired Bengaluru-based Just Eat India in a string of buyouts in Asia. It has also acquired TastyKhana in November last year.

Foodpanda Co-founder and CEO Ralf Wenzel said: "The new funding allows us to fully focus on user experience and customer service with the aim of completely disrupting the way people order food by establishing a real alternative to pizza flyers and phone calls."