Business

Foodpanda suits up with $20M to conquer online food delivery

Online food delivery is a competitive space, with numerous startups trying to edge out the competition.

Foodpanda, based in Berlin, has raised $20 million to continue expanding its delivery service around the globe. In the past few months, Foodpanda and its affiliated brand hellofood entered 15 new countries, and it’s now active in 27 different markets. It also released iPhone and Android apps. This funding will fuel that growth and support Foodpanda’s quest to become the dominant global food delivery service.

The company operates like Seamless or GrubHub. Customers enter their city and browse through delivery options in that region. Before ordering, they can check out ratings, estimated delivery time and fees, look through the menu, and then place the order online. The approach is not only convenient for customers, but also helps restaurants increase their sales and distribution.

There is a massive market for the taking here, and Foodpanda is not the only one trying to capitalize on the opportunity. Foodpanda faces competition from fellow food delivery startups Delivery Hero (also based in Berlin) and London-based Just-Eat, which have each raised over $100 million in venture capital. However, these companies are active in 12 and 14 countries respectively, with a focus on Europe. Foodpanda’s focus is on emerging markets in South America, Asia, Africa, and Eastern Europe, and in a statement issued this morning, the company said it is the leading food delivery app in most of these areas.

This financing will support Foodpanda as it adds more restaurants, countries, and customers into its systems. The startup emerged out of Berlin-based accelerator Rocket Internet, and this round was led by Investment AB Kinnevik and Phenomen Ventures. Foodpanda is based in Berlin.

Photo Credit: Prenylastman/Flickr


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