Foodpanda India looking to raise $50m
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Rocket Internet-backed Foodpanda India, which last year faced allegations of internal fraud and misappropriation of funds, is reported to be raising fresh capital.
It has mandated Mumbai-based mid-market investment bank O3 Capital for a US$40-60 million fundraise as it initiates talks with investors, reports the Times of India.
Foodpanda has already said it is selling its Indonesian business and rethinking its presence across the rest of Southeast Asia.
“To be certain, we are not looking to exit India,” says Foodpanda India CEO Saurabh Kochar. “We have grown rapidly over the past months while increasing our already positive operating margins.”
In the past six months, Foodpanda India is said to have had its average daily orders inch up to about 30,000. Swiggy, the market leader, clocks about 45,000 orders a day on average, while Zomato has about 35,000.
Over the past year, Rocket Internet global head of corporate development Spyro Korsanos has been stationed in India to get the business back in shape, according to an insider.
Launched in 2012, Foodpanda has a presence in 20 countries.
Questions & Answers
Q.What is Foodpanda India hoping to achieve with this fundraising round?
What is Foodpanda India hoping to achieve with this fundraising round?
Foodpanda India is aiming to raise fresh capital, specifically between US$40-60 million. This comes after allegations of internal fraud last year and a push to get the business back in shape, according to reports.
Q.How does Foodpanda India's daily order volume compare to its main competitors?
How does Foodpanda India's daily order volume compare to its main competitors?
Foodpanda India's average daily orders have reached about 30,000 in recent months. This compares to market leader Swiggy, which handles approximately 45,000 orders daily, and Zomato, with around 35,000 daily orders.
Q.What is Rocket Internet's involvement in Foodpanda India's current situation?
What is Rocket Internet's involvement in Foodpanda India's current situation?
Rocket Internet is Foodpanda India's backer, and its global head of corporate development, Spyro Korsanos, has been based in India for the past year. His role has been to help get the business back into shape.
Q.Is Foodpanda India planning to exit the Indian market, given its re-evaluation of other Asian markets?
Is Foodpanda India planning to exit the Indian market, given its re-evaluation of other Asian markets?
No, Foodpanda India is not looking to exit the Indian market. CEO Saurabh Kochar stated this directly, even as the company is selling its Indonesian business and rethinking its presence elsewhere in Southeast Asia.
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