Rocket Internet’s foodpanda sells Russian business for $100M
November 04, 2016
Rocket Internet’s food delivery business, foodpanda, has sold its Russian operations (dba Delivery Hero) to Mail.Ru Group for $100 million, representing a “significant return” on its original investment. Foodpanda entered the Russian market in 2012 and two years later acquired local competitor Delivery Club, which had raised about $13 million in funding from firms including Guard Capital, AddVenture and Phenomen Ventures. Proceeds from the sale will be used to expand foodpanda’s business in its core regions of Asia, the Middle East and Eastern Europe.
The deal marks a positive financial outcome for foodpanda and is consistent with the company's recent strategy of retreating from certain geographies to focus on its main markets. News broke in August that foodpanda was seeking to sell its business in Indonesia and was open to sub-$1 million offers. In April, meanwhile, another Rocket Internet company—online fashion retailer Global Fashion Group—sold off subsidiary Zalora's operations in Thailand and Vietnam in an effort to refocus in other Southeast Asian locales.