Well, it looks like things have just got a lot more interesting in the cut-throat competitive food delivery market in the UAE. In a major new development, Zomato, one of the largest food delivery businesses globally, has sold its UAE unit to the Delivery Hero Group.
The transactions on the side of Delivery Hero was handled by its subsidiary Talabat Middle East Internet Services Company.
As part of the deal, Germany-based Delivery Hero will chip in $50 million in Zomato’s ongoing funding round.
“The acquisition will add 1.2 million monthly orders and $2 million monthly revenue to Delivery Hero’s Far East and North Africa business and will strengthen its leadership position in the UAE. The acquisition will be fully funded by an acquisition facility,” Delivery Hero said in a statement after finalizing the deal.
While neither companies seemed willing to divulge specific financial details, it is believed that Delivery Hero paid somewhere around $172 million to acquire Zomato UAE.
“I am delighted to welcome Delivery Hero as a partner and shareholder and look forward to learning from their global experience to help us strengthen our fast-growing India food delivery business,” Deepinder Goyal, CEO of Zomato, said reacting to the new development.
Zomato, based out of Gurugram, India, plans on raising $1 billion over the next few months. The new fund will help it put up a more intense competition against Swiggy, another Indian food delivery giant that recently raised $105 million from Delivery Hero.