Foodpanda Acquires Competing Startup In Saudi Arabia, Cites Middle Eastern Profitability

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Rocket Internet’s food delivery startup Foodpanda has announced that it is acquiring local competitor, Hungerstation in Saudi Arabia, reports Tech in Asia.

The terms of the acquisition are not disclosed.

Foodpanda operates in Saudi Arabia under the ‘Hellofood’ name, and has been active since 2013. Hungerstation, which was founded in 2012, will continue to operate as a standalone site.

The combined business will cater to an inventory of over 2,000 restaurants spread across 30 cities in the country. It claims its entire Middle Eastern business will now turn profitable as a result of the acquisition.

Just last month, Foodpanda has announced that it was on its way to profitability in Southeast Asia, namely with thriving business in Singapore.

“Along with our other businesses in the Middle East, Hungerstation and Hellofood consolidate our market leadership in the region and we are proud to have achieved overall profitability just three years after launch,” says Raf Wenzel, CEO of Foodpanda.

Foodpanda’s latest funding round came in March 2015, when it received $110 million in funding. The startup also went on an acquisition spree in the same year, where it acquired rival sites in seven countries. It seems that Foodpanda is continuing the move quickly through acquisition, this time targeting local competitors in the Middle East.

A version of this appeared in Tech in Asia on August 9. Read the full version here.