12 Jan 2018 13:50 IST

Ola paid ₹202 cr to buy Foodpanda

Ola recently raised $1.1 billion from Tencent and SoftBank

ANI Technologies, which owns Ola, has disclosed that it paid a total of ₹202 crore to buy online food-delivery company Foodpanda India from Germany’s Delivery Hero.

Shares issued

According to filings with the Ministry of Company Affairs, Ola’s company, ANI Technologies Private Limited, has issued preference shares worth ₹28 crore for consideration, other than cash, to Delivery Hero.

Ola also filed a share purchase agreement in support of this issuance, which indicates that this ₹28 crore is the consideration for buying 100 per cent of the shareholding of Pisces eServices Private Limited (FoodPanda India), the Indian company that runs FoodPanda.

In addition to this allotment, filings as per paper.vc, the business intelligence platform, indicate that DeliveryHero has invested ₹174 crore (Series I4) in Ola, and Ola in turn has invested this ₹174 crore in FoodPanda India. In essence, this places the total consideration for the deal at ₹202 crore.

Largest fund infusion

When announcing the deal in December, Ola indicated it would invest $200 million in FoodPanda India, which is considered the largest fund infusion in India’s online food-ordering and delivery industry thus far. The current investment of ₹174 crore does not appear to be part of this planned investment.

A senior Ola executive said that the deal was more about DeliveryHero and ANI Technologies coming together to drive the food aggregator’s business in India.

With this closing, Naspers, a multinational internet and media group, is now an indirect shareholder in Ola. Naspers had earlier invested in DeliveryHero and recently increased its stake to 23.6 per cent becoming the single-largest shareholder in DeliverHero.

The announcement of the deal comes months after Ola raised $1.1 billion from Tencent and SoftBank with the promise of another billion on its way. Shortly thereafter Tencent closed a ₹2,580 crore ($400 million) investment in Ola.

As per the announcement on December 19, the deal involves the transfer of Foodpanda’s India business to Ola, in an acquisition deal in exchange for Ola stock.

Saurabh Kochhar, who was the CEO of Foodpanda India until recently, has decided to move on to pursue other opportunities.

Pranay Jivrajka, Founding Partner at Ola, has been appointed as interim CEO of this business unit, supported by the existing leadership team at Foodpanda India.

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