Jan 28, 2016
Digbijay Mishra
The Times of India (Bengaluru)
Rocket Internet-backed Foodpanda, facing rough weather, is desperately searching for a buyer at a lowly price tag o $10-15 million, multiple sources familiar with the development told TOI. The Samwer brothers-led internet company's interests in its Indian portfolio has rapidly been waning. Most of its flagship firms, including Fab Furnish and PrintVenue, are on the block. “Foodpanda has held talks with competitors in India. Owing to several issues the company is facing its peers have been pitched with a sale value of $10-15 million,“ a source told TOI.
A Rocket Internet spokesperson told TOI in an email, “We don't comment from Rocket's side to rumours about Foodpanda.“ Despite the low valuation, Foodpanda India has not found a buyer. It could be a signal that the foodordering platform may decide to shut operations soon.
In 2015, Foodpanda raised more than $300 million from Berlin-based Samwer brothers and Goldman Sachs for its global business. That's when it invested heavily into the Indian market, becoming one of the largest players in the online food-ordering segment. To ward off rivals Zomato, Swiggy and TinyOwl, Foodpanda acquired TastyKhana and Just Eat in India.But things started to slide from then. Reports emerged last year of an alleged fraud and systematic discrepancies in Foodpanda's operations.This was followed by the company laying off 300 in a crisishit food-delivery market.
“Zomato and Swiggy have been approached for a buyout.Rocket is yet to garner keen interest from possible suitors for Foodpanda,“ sources said. Zomato founder and CEO Deepinder Goyal did not respond to TOI calls; Swiggy cofounder Nandan Reddy refused to comment.
The so-called food-technology sector, which saw a rush of early-stage funds over the past year, is finding itself in the midst of a major restructuring, resulting in hundreds of job cuts. Zomato and TinyOwl together fired more than 500 people and have been scaling down operations. Gurgaon-based Zomato recently stopped taking online food orders in four Indian cities.
Foodpanda India, which is run by Pisces eServices, reported a loss of Rs 36 crore in March 2015 over a revenue of close to Rs 5 crore, as per data from RoC at the ministry of corporate affairs.
Digbijay Mishra
The Times of India (Bengaluru)
Rocket Internet-backed Foodpanda, facing rough weather, is desperately searching for a buyer at a lowly price tag o $10-15 million, multiple sources familiar with the development told TOI. The Samwer brothers-led internet company's interests in its Indian portfolio has rapidly been waning. Most of its flagship firms, including Fab Furnish and PrintVenue, are on the block. “Foodpanda has held talks with competitors in India. Owing to several issues the company is facing its peers have been pitched with a sale value of $10-15 million,“ a source told TOI.
A Rocket Internet spokesperson told TOI in an email, “We don't comment from Rocket's side to rumours about Foodpanda.“ Despite the low valuation, Foodpanda India has not found a buyer. It could be a signal that the foodordering platform may decide to shut operations soon.
In 2015, Foodpanda raised more than $300 million from Berlin-based Samwer brothers and Goldman Sachs for its global business. That's when it invested heavily into the Indian market, becoming one of the largest players in the online food-ordering segment. To ward off rivals Zomato, Swiggy and TinyOwl, Foodpanda acquired TastyKhana and Just Eat in India.But things started to slide from then. Reports emerged last year of an alleged fraud and systematic discrepancies in Foodpanda's operations.This was followed by the company laying off 300 in a crisishit food-delivery market.
“Zomato and Swiggy have been approached for a buyout.Rocket is yet to garner keen interest from possible suitors for Foodpanda,“ sources said. Zomato founder and CEO Deepinder Goyal did not respond to TOI calls; Swiggy cofounder Nandan Reddy refused to comment.
The so-called food-technology sector, which saw a rush of early-stage funds over the past year, is finding itself in the midst of a major restructuring, resulting in hundreds of job cuts. Zomato and TinyOwl together fired more than 500 people and have been scaling down operations. Gurgaon-based Zomato recently stopped taking online food orders in four Indian cities.
Foodpanda India, which is run by Pisces eServices, reported a loss of Rs 36 crore in March 2015 over a revenue of close to Rs 5 crore, as per data from RoC at the ministry of corporate affairs.
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