Ola, the Uber rival in India, has recently announced it will be acquiring Foodpanda’s India business from its parent company, DeliveryHero, and entering the food delivery space.
The Ola/Foodpanda India deal shows DeliveryHero taking an undisclosed amount of Ola stock in exchange.
Undisclosed all-stock deals are normally indicative of a willingness to sell, and it is rumored that DeliveryHero has been shopping its Indian business around. Further: Saurabh Kochhar, who headed Foodpanda India, has also “decided to move on to pursue other opportunities.” Ola founding partner will interim CEO until a permanent replacement enters the picture.
Nonetheless, Ola — which is now at around two million rides per day — is an ideal buyer.
The company is in the mood for expansion after it closed a $1.1 billion funding round led by Tencent and SoftBank in October, and seeking ways to differentiate itself from Uber’s Indian business.
To help kickstart the project, Ola is pouring $200 million into Foodpanda India, which claims 12,000 restaurant partners in over 100 cities. That investment is more capital than Foodpanda’s (many) competitors in India have raised to date.