Delivery Hero Acquires Rocket Internet-Backed Startup Foodpanda

(Bloomberg) -- Delivery Hero Holding GmbH is acquiring Foodpanda, bringing together two top food delivery startups based in Germany.

Rocket Internet SE, a backer of both companies, said the combined business will process more than 20 million orders a month and operate in 47 countries. The German startup investor said the deal will increase its Delivery Hero stake to 37.7 percent.

Europe is overrun with online food delivery companies, and Rocket has helped drive investor enthusiasm. The firm was involved in six of Europe’s 10 largest private investments in food delivery last year, according to data from Tech.eu.

Delivery Hero and Foodpanda have raised more than $1.5 billion combined, according to data compiled by Bloomberg. In addition to Rocket, their backers include Goldman Sachs and Insight Venture Partners.