Foodpanda, one of the survivors — marginal one at that though — of the frequent ups and downs in food tech startups, secured more than 150 crores in funding in last 12 months. Foodpanda’s India unit raised the amount in eight different stages from Berlin-based parent Jade Gmbh and Co.
The information was revealed in documents submitted to Registrar of Companies (via Mint). As per these documents, the transactions took place between July 2015 to June 2016. The firm had announced a funding round of $100 million in May last year.
It had raised that amount from investors led by hedge fund Goldman Sachs Investment Partners. The amount reportedly came from the same fund but the company did not clarify on this.
This also puts rest to rumors which recently surfaced regarding the fate of Foodpanda. A leading newspaper daily had reported that like its other businesses, Rocket Internet was looking to sell the Indian unit of Foodpanda.
However, CEO of Foodpanda Saurabh Kochhar denied any sale talks. In fact, he said that the firm was looking to raise fresh funds. It has already roped in investment banker O3 Capital to proceed for the same.
He also revealed that the startup was already operationally profitable in India since February this year, hence putting rest to any speculations regarding an impending sale due to performance issues.
Foodpanda would use the fresh funds to enhance technology, infrastructure, delivery and increasing marketing activities.
Talking about expansion, Foodpanda recently joined hands with Ecom Express to enter door-to-door and e-commerce deliveries. The idea is to make maximum utilisation of its delivery fleet during non-peak hours and find alternate sources of revenues from the same.
According to Kocchar, they would launch a pilot project in Delhi and Gurgaon in September. If the project is successful, they will expand their services to Pune, Bangalore, and Hyderabad. Commenting on the motive behind this project, Kochhar said,
“Food will always be our priority and our primary business. Such initiatives are aimed to improve the efficiency of the business across the lean times during the day as well.”
Notably, Foodpanda has a delivery fleet of 1,500 people which contains a mixture of payroll and part-time employees who come in peak hours for deliveries. Similarly, Ecomm Express also has a team of over 15000 delivery boys around the year.
By catering to increasing demands of logistics and last-mile delivery of e-commerce companies, both companies may expect to earn additional revenues.
This is particularly crucial for Foodpanda as the online food ordering business already has a very low unit economics. So, it needs to find ways to increase revenues if it wants to sustain its business in the long term.
Foodpanda is not the first food tech startup though, to enter the delivery segment. Previously, TinyOwl also shut down its operations and merged with Roadrunnr to form a new entity called Runnr, primary involved in delivery operations. Runnr however, solely focusses on the delivery of food items from nearby restaurants instead of e-commerce deliveries. It also raised $7 million recently from Nexus Venture Partners.