Ola acquired Delivery Hero's Foodpanda India

Ola buys Foodpanda India and will invest US$200 million. ANI Technologies Pvt. Ltd, which operates a ride-hailing service headquartered in Bengaluru, said it had acquired the Foodpanda India from Delivery Hero AG parent in Berlin, Germany, in an all-share deal.

Ola announced it had acquired Foodpanda business in India in a share deal and undisclosed transaction details. The agreement marks Ola's move to the food online ordering and shipping service segment and competes Zomato, Swiggy and UberEATS.

"Our commitment to invest US$200 million in Foodpanda India will help businesses grow by creating value for customers and partners.The global leadership of Delivery Hero and Ola's platform capabilities on local uniqueness create strength," said Ola co-founder and CEO Bhavish Aggarwal on Tuesday

The deal comes months after Ola raised US$1.1 billion and possibly another US$1 billion from SoftBank Group and Tencent Holdings. Foodpanda India was established as a local unit of Foodpanda GmbH in 2012. The company has a tough task in India, having service quality issues, layoffs and tough competition.