Cab aggregator Ola has acquired online food delivery startup Foodpanda India from its German parent Delivery Hero DH in a stock deal valued at US$40 million.
“Our job was to anticipate problems together with our clients, and resolve them before they get to the closing table, so that there are no last-minute hiccups for either party,” said Stuti Galiya, counsel at Khaitan & Co, which advised Foodpanda and DH.
DH and the Khaitan team applied a pragmatic approach to the deal with a focus on minimizing roadblocks to deal completion. “What made it easier to navigate the negotiations and satisfactorily reach the finish line were the unrelenting endeavours of the commercial and legal teams of DH to ensure smooth facilitation and coordination not only between the numerous moving parts, but the various financial, legal and commercial teams involved as well.”
Cyril Amarchand Mangaldas (CAM) advised Ola. “The deal provides a great opportunity for Foodpanda to leverage Ola’s strengths as one of India’s largest platforms and penetrate deeper into the Indian market,” said Reeba Chacko, corporate partner at CAM.
Foodpanda India laid off over 250 employees across business segments in December 2015 and halted food delivery services in six cities. Ola co-founder Bhavish Aggarwal announced an investment of US$200 million to support the business.
The CAM team also consisted of Bengaluru partner Arun Prabhu, who advised on intellectual property aspects, and Mumbai partner Anshuman Sakle, who advised on competition law aspects.
The core transaction team of Khaitan & Co team comprised Galiya, director Ketan Kothari and associates Bidya Mohanty, Varun Narayan and Urvashi Mehta. Counsel Shailendra Bhandare and associate Sourav Dan advised on the intellectual property related aspects, and consultant Subramanian Ramaswamy assisted on corporate secretarial aspects.
Ernst & Young (Bangalore) was the tax and financial advisors to Ola. The deal was expected to close in January.