Foodpanda acquired rival JustEat in India in an all-stock deal, on Thursday. The deal places Foodpanda in direct competition with Zomato, the restaurant search service which is also expected to join the online food ordering platform.
With the UK-based JustEat receiving an undisclosed stake in the new company, the post-acquisition entity will become India's largest food-ordering service - available in more than 200 cities, covering 12,000 restaurants.
The online food services market is valued at more than $14 billion (around Rs 86,600 crore) in India and $371 billion globally.
"JustEat had a very strong play in the South Indian market. Where we operate in the world, our aim is to be the undisputed leader in that country. This buyout is geared towards that strategy," said Rohit Chadda, co-founder and managing director of Foodpanda India.
Foodpanda would take over operations of JustEat India as a separate company, followed by a likely merger later. The combined entity will have 250 employees working in India, EconomicTimes reports.
Meanwhile, it has been learnt that Zomato is currently working on a food ordering platform, to make use of its existing leverage of 50,000 restaurants. The company has also been very keen to acquire start-ups across the globe, giving it access to key international markets.
