With Major Acquisition Of TinyOwl Ahead, Foodpanda India Says Goodbye To Its Indian M.D

Foodpanda India has was launched by Rohit Chadda in 2012 along with Akhilesh Bali And Amit Kohli, had received a major management change in March 2015. Now reports have confirmed that the managing director Rohit Chaddha has decided to officially stand down from the company position. In plan to execute his own new mobile based venture, he will continue to be a shareholder and won’t be involved in any regular operations of the company.

Foodpanda Expanding Its Shadow Over TinyOwl

With the aim to enlarge its market place before next years public listing, this online food market hub Foodpanda is all set to get its hands on food ordering app TinyOwl, which is currently Mumbai based. In fact more engaging rumours of Foodpanda looking for more strategic investment in another Bangalore based food app named Swiggy, is encircling the e-market. But recently the co-founder of Swiggy Nandan Reddy, clarified that no such technology integration will take place between these two companies.

Foodpanda is hunting for profitable market share and looks to fasten the core of its base, this will make it more substantial and efficient competitor of Zomato. For the time being, Foodpanda is aptly pumped up with fresh new funds of approx $110 million from the efficient Rocket Internet. On the other hand, TinyOwl is struggling to keep with any kind of fresh funding. Earlier this year, it has collected almost around $20 million, which was led by Sequoia. Adding to that TinyOwl has already spent huge cash in advertising and promotions. It recently comprises of 4,000 restaurants and recently initiated its services in Hyderabad, Pune, Gurgaon and Bengaluru. It is also targeting to increase its presence in 50 major cities by the end of 2015.

The Fierce Competition

According to an anonymous investor, the food tech sphere is already getting too crowded with players playing the same game. There are only three dominant competitors in the market, Zomato, Foodpanda and Swiggy in the current segment. As TinyOwl is finding difficulty in raising sufficient funds, this segment will experience major merger. With reference to 2014 Tracxn, the food ordering market that is blooming with over 120 odd start ups that are all fighting for that piece of cake of ₹89,500-crore market. Out of these giant players almost 60 lead up in 2014 alone. In such ferocious scenario, this major alliance is imminent. Last year in November, Tasty Khan and Just Eat In February both were acquired by Foodpanda. Zomato is also creating lot of buzz by capturing minority stakes in food ordering firms. Thus, the tooth and nail fight in this food delivery space is getting thick by each passing day in India.