Ola-backed Foodpanda acquires Holachef to enter cloud kitchen biz

Company banks on the deal to strengthen presence in Mumbai and Pune; also plans standardised food items under own brand

Ola-backed food-delivery company Foodpanda on Tuesday said it has acquired Holachef, a food-ordering chain in Mumbai and Pune, taking over its network of cloud kitchens.

Foodpanda also plans to launch standardised food items under its brand, it said in a statement. 

Since its takeover by online taxi-hailing giant Ola, the company has been on an expansion spree, signing riders and restaurants, and offering discounts to increase orders. 

Ola has committed to infuse $200 million (Rs 14.69 billion) in Foodpanda. 

The latest announcement comes on the heels of rival Swiggy acquiring Mumbai-based Scootsy, a food-delivery firm, for about Rs 500 million (Rs 36.73 billion). 

The acquisition of Holachef will give Foodpanda a foundational set of cloud kitchens, over which it plans to build a larger network. 

A cloud kitchen is a small restaurant unit meant to supply standard food items, typically in or around key districts and sub-districts. 

F“We aim to build India’s largest cloud kitchen network that will be a major step in further elevating the food experience for our customers,” said Pranay Jivrajka, chief executive at Foodpanda. 

Foodpanda or Ola did not divulge the size of the deal. 

Holachef, which started in 2014, has struggled to keep the business running and had to shut services around June, according to customer accounts on its social media accounts. 

The firm, backed by Kalaari Capital, India Quotient, and Ratan Tata’s private investment fund, had raised about $9 million (Rs 661.29 million) from investors.