Germany's Delivery Hero said on Tuesday it was selling its foodpanda India business to Ola in return for shares in the Indian ride-hailing firm.
Under the agreement, Ola will also commit to investing $200 million in foodpanda India. “The partnership with Ola will allow us to further consolidate markets where it strategically makes sense to collaborate with leading local players,” Delivery Hero Chief Executive Niklas Ostberg said.
Delivery Hero, which floated on the stock exchange in Germany in June, had acquired food delivery firm foodpanda and its Indian subsidiary in December 2016.