German incubator Rocket Internet’s food delivery service, Foodpanda, has bought TastyKhana in India to expand its base in the online food delivery market.

According to sources close to the development, the deal size is estimated at ₹120 crore.

“Combined with our efforts in other important markets such as Russia, Brazil and South-East Asia, where we already gained a leading position, we are best positioned to accelerate growth and become the ‘Amazon’ of food ordering in emerging markets,” said Ralf Wenzel, Co-Founder and Managing Director of Foodpanda group in a statement.

Gemany’s Delivery Hero had last year invested about ₹30 crore in TastyKhana, a Pune-based start-up founded by Sachin Bharadwaj in 2007.

Delivery Hero operates across major European and Asian markets.

According to an official statement by Foodpanda, TastyKhana will continue to operate as an independent brand.

It has services in over 20 major cities in India and has partnered with over 7,000 restaurants spreading across their national network.

Food portals

Together, Foodpanda and TastyKhana will partner with over 10,000 restaurants in India, covering over 173 cities.

Food portals in India are at a nascent stage but growing fast at 150 per cent rate annually.

Players such as Zomato, JustEat.com, FoodPanda.com, Yummybay.com and TableGrabber, Tablewalla.com and Dineout attribute this huge growth to at least three factors — increased internet penetration, rise in smartphone usage and the continued economic slowdown that forces restaurants to start delivery options.

As eating out has becomes expensive, consumers are increasingly ordering over phone, point out these portals.

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