FoodTech: German Foodpanda sells its Russian entity for $ 100 million

by bold-lichterman

  • Foodpanda has decided to sell the Delivery Club meal delivery service to the Russian group Mail.ru.
  • This transaction marks the end of Foodpanda’s activities in Russia.
  • Earlier this year, Rocket Internet, which owns 49% of Foodpanda, divested its online food ordering operations in Spain, Italy, Brazil and Mexico to Just Eat.

The online meal ordering site Foodpanda decided to sell the start-up Delivery Club to the Russian group Mail.ru, which publishes a web portal and a search engine in Russia. Launched in 2010, the Delivery Club meal delivery service boasts a network of 4,000 partner restaurants in 75 cities in Russia.

This takeover marks the end of Foodpanda’s activities in Russia. The Berlin-based start-up entered the Russian market in 2012 before accelerating with the acquisition of the Moscow company Delivery Club.

Focus on Asia, the Middle East and Eastern Europe

This transaction aims to reduce the activity of Rocket Internet, which owns 49% of Foodpanda, consisting of incubating and developing dozens of start-ups in online commerce. From now on, Foodpanda will continue to operate in 20 countries. “Cash funds will be reinvested to further expand Foodpanda’s core regions in Asia, the Middle East and Eastern Europe», Specifies the German company.

Earlier this year, Rocket Internet sold its online food ordering operations in Spain, Italy, Brazil and Mexico to Just Eat, the UK industry player, for $ 140 million.

By getting its hands on Delivery Club, Mail.ru seeks to expand its range of services to its users in Russia. The group claims it reaches 94% of the internet population across Russia. The company owns the most popular Russian e-mail (Mail.ru), Vkontakte, “Russian Facebook”, as well as ICQ instant messaging.

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