Ride-hailing firm Ola has acquired the Indian unit of online food delivery service Foodpanda from Delivery Hero in exchange for an undisclosed equity stake.
Ola, the online transport service now based in Bangalore, said Tuesday that it would invest $200 million into Foodpanda's Indian business, adding that this would be the largest injection of cash into the country's digital food ordering and delivery industry. Foodpanda is a German-based food delivery marketplace that was bought up by its larger rival Delivery Hero in 2016.
Pranay Jivrajka, founding partner at Ola, will serve as interim chief executive of the Foodpanda unit in India.
"As one of India's pioneers in the food delivery space, Foodpanda has come to be a very efficient and profit focused business over the last couple of years," Bhavish Aggarwal, co-founder and CEO of Ola, said in a press release Tuesday.
"Our commitment to invest $200 million in Foodpanda India will help the business be focused on growth by creating value for customers and partners."
Ola raised $1.1 billion in a funding round led by China's Tencent in October, valuing the company at $7 billion.