After a period of lull, the food-tech space in India especially food delivery has picked up pace over the last few months.
Following ride-hailing major Ola acquiring lagging food delivery service operator Foodpanda‘s India operations, it is now reported that Deliveroo, the $2 billion UK startup, is planning to make its foray into the country.
Last month Uber’s local rival Ola acquired the Indian operations of food delivery platform Foodpanda from Germany-based Delivery Hero Group, and committed to investing $200 million in the food delivery business.
In India, Deliveroo will face stiff competition from Swiggy and Zomato that already have a strong investor backing and hold in the market. Uber, also launched its food delivery service Uber Eats in India a few months ago.
Founded in 2013 London-headquartered Deliveroo operates in 140 cities across 13 countries in Asia-Pacific, Europe and the Middle East. In Asia, Deliveroo operates in Hong Kong, Singapore and the UAE.
The report follows Deliveroo’s $385 million latest fund raise in September, which has valued the startup at $2 billion. The funding round was led by T Rowe Price Associates, Inc and Fidelity Management & Research Company, who have previously backed global technology companies including Facebook, AirBnB and Tesla. Its existing investors DST Global, General Catalyst, Index Ventures, and Accel Partners also participated in the round.
“They are in the midst of getting on board a person who will spearhead the launch in India along with building a team. After securing new funding, expanding into new geographies was on the cards for them,” said one of the sources
Food delivery companies have faced their share of hurdles in the country, leading to a consolidation in this space including the recent acquisition of food delivery start-up Runnr by Zomato Media Pvt Ltd. Runnr was formed last year after a merger between hyperlocal delivery startup Roadrunnr and food-ordering startup TinyOwl, both of whom were struggling financially.