Rocket Internet sells Foodpanda to Delivery Hero

The deal will see Rocket exchange all of its shares in Foodpanda for newly issued Delivery Hero shares, raising its stake in Delivery Hero to 37.7% from the 30% it acquired for EUR496 million ($586 million) in February 2015. In a statement, Rocket said the sale of Foodpanda would lead to "a significant reduction of complexity at group level for Rocket Internet."

Foodpanda has a presence in 22 countries. Its strongest footprint is in Asia, where an aggressive acquisition strategy has seen it buy peers in seven markets including India, Malaysia, Singapore, the Philippines, Pakistan, Hong Kong and Thailand in recent years. The company has raised more than $310 million from Rocket and other investors worldwide since its 2012 launch, most recently a $100 million commitment led by Goldman Sachs in May 2015.

Following Foodpanda's consolidation Rocket formed Global Online Takeaway Group, combining Foodpanda, Spain's La Nevera Roja and Italy's Pizzabo - all controlled by Rocket - with its 30% stake in Delivery Hero. The move mirrored a similar play by Rocket in the e-commerce sector, when it combined five emerging markets fashion e-commerce brands, including Southeast Asia and Australia-based Zalora, into the Global Fashion Group (GFG).

The acquisition of Foodpanda gives Delivery Hero access to 20 additional countries, with the combined company having a presence in 47 countries worldwide. Delivery Hero expects to process over 20 million orders per month once it integrates Foodpanda into its own operations.

Rocket's sale of Foodpanda follows its exit of Southeast Asia-focused e-commerce platform Lazada to Alibaba Group earlier this year. Alibaba paid about $1 billion for a majority stake in the company, in a deal that valued Lazada at $1.5 billion overall. GFG has also seen some parebacks, having earlier this year exited India-focused Jabong to Flipkart-backed Myntra, its chief rival in the country, and seen Rocket cut its valuation of the group from EUR3.1 billion to EUR1 billion.

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• Topics
• Southeast Asia
• South Asia
• Consumer
• Technology
• Trade sale
• TMT
• India
• Rocket Internet
• Exit