Rocket Internet Invests $717 Million in Delivery Hero and Hello Fresh, Acquires 7 Other Food Startups
To show the world their massive appetite, Berlin-based Rocket Internet has invested $717 million in two of the most popular startup food delivery companies, including Delivery Hero and Hello Fresh.
Specifically, Rocket Internet invested $568 in Delivery Hero, which is also based in Berlin and facilitates food deliveries from local restaurants. After the investment, Rocket Internet now owns 30% of Delivery Hero. I wonder how much money is required to fully acquire this company, any guesses?
Rocket Internet states that their goal is to become the largest Internet company outside of the United States. These latest investments will emphasize on the their commitment to this ambition and their focus on expanding their global reach.
Furthermore, Rocket now has a new unit called Global Online Takeaway Group and Delivery Hero will be a part of it. This group will also accommodate Foodpanda, which has been Delivery Hero’s main rival in Asian territories.
The second massive investment the company made is in Hello Fresh. Which is also a Berlin-based startup and provides meal kits and food recipies. The startup received an investment of $149 million from Rocket Internet. In Hello Fresh, Rocket now has a 52 percent stake, but for now Hello Fresh is not being added to Global Online Takeaway Group.
Rocket’s Rocket chief executive Oliver Samwer stated:
We are extremely excited about the opportunity in the global food and groceries sector with its tremendous market potential.
In addition, the company acquired 7 other similar food companies in Asia, including, EATOye in Pakistan, City Delivery in Philippines, Koziness in Hong Kong, Food Runner’s Room Service Malaysia/Singapore, and Food By Phone from Thailand. In Europe, the company bought Pizzabo in Italy and La Nevera Roja in Spain.
Now, Rocket Internet owns food delivery businesses in 30 countries around the world but the company refrained from sharing investment details related to their deals in Asia.
“With the recent acquisitions foodpanda becomes the market leader across South East Asia,” said Ralf Wenzel, Co-Founder and CEO of foodpanda group, in a statement. “The combined expertise and experience of several great local companies allow us to significantly improve our offering and service to our customers.”
According to Rocket they get more than 78 million orders per month, and the company’s new global business unit will cover 140,000 restaurants in 64 markets around the world.