After shutting shop, Foodpanda’s Vietnam arm finds buyer in local rival Vietnammm

Visual from Foodpanda Vietnam website.

Rocket-Internet’s food ordering service venture Foodpanda said its Vietnamese operation has been acquired by local rival that goes by the name Vietnammm.

Vietnammm managing director Jochem Lisser has confirmed the development to DEALSTREETASIA.

The acquisition announcement came as a surprising twist because Foodpanda Vietnam Co Ltd said, in a December 2 letter to its partners, that the Vietnam ops will be terminated due to financial issues, adding that all of the company’s activities will cease within five days.

Meanwhile, buyer Vietnammm will be tapping Foodpanda Vietnam’s resources and client base of 1,000 restaurants.

This deal enables Foodpanda’s Vietnam-based customers and listed restaurants to keep making and receiving orders online, Tech in Asia reported a statement from the German company.

Also Read : Rocket Internet-backed Foodpanda to exit Vietnamese market

“Foodpanda has always been in the front line of market consolidation in the online food delivery sector by establishing clear number one positions in the vast majority of its countries and by conducting a number of complementary acquisitions in the past. This time, we contribute our business in Vietnam which allows us to focus instead on more attractive core markets and helps Vietnammm to become the strongest local player,” the newswire cited Foodpanda co-founder and CEO Ralf Wenzel.

Lisser, in an email sent to DEALSTREETASIA, was confident that Vietnammm has been leading the local market for nearly five years since its inception.

While Tech in Asia cited Tim Schefenacker, Foodpanda’s global head of communications, that “we saw a smaller and rather long-term opportunity” as the reason for the abortion, Lisser did not share the view that Vietnam is not a delivery market.

DEALSTREETASIA reported earlier some industry insiders’ opinion that food ordering is not a Vietnamese lifestyle habit.

With this deal, the consolidation in the local food delivery space is once again seeing an uptick following last year’s strategic investment in Diadiemanuong.com by Ho Chi Minh City-based Chicilon Media, and investment in the very buyer of Foodpanda Vietnam, Vietnammm, by Netherlands’ Takeaway.com in 2013.

The game is now meant for local players. Other food delivery platforms are also backed by Vietnamese companies. Deliverynow.vn is a unit of food media firm Foody Corporation, while Eat.vn is funded by VC Corp, one of the biggest media companies in the country.

Also Read:

Foodpanda looking to sell Indian arm amidst growing competition?

Foodpanda raises $100m more led by Goldman Sachs, takes total amount raised to over $310m

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.