Rocket Internet has sold its mobile and online food ordering portal foodpanda to rival Delivery Hero for an undisclosed sum.
Berlin-based Delivery Hero was founded in 2011 by Niklas Östberg. The company said in its announcement that the purchase would increase its stake in the global online food ordering and delivery business. With the acquisition, the combined group will now be processing over 20 million orders per month across 47 countries.
Delivery Hero will also be able consolidate its market leadership position in the Middle East and will be adding 20 new countries in Eastern Europe, MENA, and Asia to its platform. Before the acquisition, foodpanda operated in 22 countries with market leading positions in 17 of them, according to Rocket.
In exchange for all its shares in foodpanda, Rocket Internet received newly issued shares in Delivery Hero, which effectively increases its stake in the company to 37.7% (on a fully diluted basis).
"The combination of foodpanda and Delivery Hero, one of our most important companies, further consolidates key markets resulting in significantly improved market positions. Delivery Hero is also acquiring new markets with leading market positions further broadening its geographic footprint,” said Oliver Samwer, Rocket Internet's CEO, in a media statement.
The transaction is subject to customary closing conditions and is expected to close prior to December 31.
“We look forward to working with the team to continue creating unparalleled take away experiences for our customers around the world,” Östberg said.
In the first half of the year, Delivery Hero reported more than 83 million processed orders globally, which is up 45% compared to the same period the previous year. It said revenues during the first half of 2016 also grew by 53%.