Here are 10 things to know about Ola's acquisition of Foodpanda India:
1. SoftBank-backed Ola's investment commitment of $200 million in Foodpanda's India business, is the largest such funds infusion in an Indian online food ordering and delivery company till now, according to a report by Press Trust of India (PTI).
2. Under the deal, Foodpanda's India business will be transferred to Ola while Delivery Hero will get shares in Ola, the companies said in a statement.
3. "The partnership with Ola will allow us to further consolidate markets where it strategically makes sense to collaborate with leading local players," Delivery Hero Chief Executive Niklas Ostberg said.
4. Ola said Foodpanda India will benefit from its scale and efficiencies as a platform and it will continue to collaborate with Delivery Hero on building the online food delivery ecosystem in India.
5. Saurabh Kochhar, who was the CEO of Foodpanda India until recently, has decided to move on to pursue other opportunities. Ola Founding Partner Pranay Jivrajka has been appointed as interim CEO of this business unit, supported by the existing leadership team at Foodpanda India.
6. "I'm excited about our partnership with Delivery Hero as we team up to take Foodpanda India to the next level. Our commitment to invest $200 million in Foodpanda India will help the business be focused on growth," Ola Co-founder and CEO Bhavish Aggarwal said.
8. In 2014, Ola had forayed into the food delivery business with Ola Cafe and had expanded the offering to cities like Delhi, Mumbai and Bengaluru. However, Ola Cafe was later shut down.
9. Foodpanda's revenue stood at Rs 62.16 crore in 2016-17 compared to Rs 37.81 crore in the previous fiscal, on the back of strong growth in orders from key markets. Its losses too declined 69 per cent to Rs 44.81 crore in 2016-17, from Rs 142.64 crore in 2015-16.
10. Competition in the food delivery segment has been intense with the likes of Zomato and Swiggy competing aggressively to capture the market. It heated up further after the entry of UberEATS a few months ago. (With Agencies Inputs)