Wednesday - Aug 23, 2017

Online meal delivery firm Foodpanda picks up $60 million in new financing

Online meal delivery firm Foodpanda picks up $60 million in new financing as they seek to fend off their rivals

Foodpanda, an online take-away food delivery company, have announced that they have raised an additional $60 million in financing, seen as a measure  to   investigate and expand in an increasingly competitive market.

This latest round of financing is the third enjoyed by Foodpanda, who have now succeeded in raising more than $100 million since their founding in 2012.

The multi location company, are one of several eCommerce and financial services enterprises who grew up under the wing of Rocket Internet, as they place an ever-growing footprint on the rapidly expanding local food take-away market. A footprint which recently got larger with the acquisition of Russian rival DeliveryClub for undisclosed terms, which continues to operate as DeliveryClub in 19 Russian cities.

Currently, Foodpanda’s operate in 501 cities in 40 countries, run by a central team based in Berlin, which develops the technology and marketing for country managers to run local sales. The group provides a delivery service for more than 30,000 restaurants all of whom pay a commission on each order processed by Foodpanda units, while delivery is free to dining customers.

According to Ralf Wenzel, co-founder and chief executive of Foodpanda, the additional funding will be utilised by the company to deepen their market penetration in its existing Asian, African, Eastern European, Middle Eastern and Latin American markets, where they are already comfortably established, although they are aware of the arrival of competition coming up fast amongst them publicly listed GrubHub, which has popularized the category since its founding in 2004, and currently handles menus from 250,000 restaurants in 500 U.S. cities.

Also looming large on the horizon is Just-Eat the dominant online food delivery company in the UK as well, having a presence in parts of Western Europe, although lagging well behind Berlin-based Delivery Hero, who are particularly active in 20 markets across five continents and has succeeded in raising $285 million in funding to date. Delivery Hero handles delivery for more than 60,000 restaurants with a client base stretching from Germany to Latin America from China and India.

Outstanding among the group of investors are Berlin-based Rocket Internet, who were involved in the forming of Foodpanda.

Berlin-based Rocket Internet is bidding to become a major player on the global internet scene covering markets ranging from Africa to Latin America and Russia.

Active in 100 countries in everything from online shopping to taxi bookings to financial services, Rocket Internet plans an initial public offering later this year that could value it at 3 billion to 5 billion euros ($4 billion-$6.7 billion).

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