FOODOUT Group (foodoutgroup.com) – leading mobile and internet food delivery and takeaway startup in Baltics, merges with the largest Ukrainian food delivery startup „EDA.UA“, and joined company is opening operations in Belarus very soon.
To execute this transaction Goldfish Fund joined forces with CIG. “We believe that Food delivery and takeaway business is moving to consolidation phase. We think that M&A in the markets where there is clear No.1 player is the smartest way of development in terms of securing investors’ ROI. At the same time, we are not closing doors and planning expansion to other countries where we see path to become No.1 player in 2-3 years”, says Tomas Martunas, Chairman of FOODOUT Group Board.
After this merger, FOODOUT Group will be present in 6 countries with 140 million population being No.1 player in 3 Countries and clear strategy of getting No.1 in another 3 during 2017-2018. Needless to say, in these countries Internet activity is growing at a fast pace, fueled by mobile.
Neither party has revealed the terms of the deal, but it‘s known that such deals are measured in tens of millions euros. To fuel ambitious plan of geographical expansion, CIG additionally invested EUR 1 mln into consolidated FOODOUT Group.
Eevgenyi Kazantcev, Founder and CEO of EDA.UA: “We have worked very hard during last years, developing strategic alliances, great relations with the main restaurants and building trust among our customers. Customer service perfection culture, best user experience and our passion helped us to become the leader of online food delivery in Ukraine. By merging delivery experience, marketing and technology teams of both partners, we are very excited a to take the next big step in order to provide a world class service to Ukrainian consumers.”
“This merger puts ground for other CEE/CIS players for further consolidation. We strongly believe in CEE/CIS markets and assume double digit growth rates for our group companies for the next 5 years. Taking that into account, we already in talks with other player in 5 more countries in CEE/CIS regarding potential merger. We clearly see how to build the biggest regional player in the next 2-3 years”, says CIG managing partner and FOODOUT Group Board member Volodymyr Kryvko.
“We expect to continue further consolidation and mergers with the help of separate investment round which is planned at the end of this year. We will not leave a single hungry person in the region, will continue improve customer experience and fast delivery benchmarks in every market we operate“, said Tomas Martunas, Chairman of the FOODOUT Group Board.
FOODOUT Group Operates in 6 countries (Ukraine, Belarus, Lithuania, Latvia, Estonia and Iran) with the total population of 140 million people. The food delivery regional leader already made more then 1,7 million deliveries in 6 countries more than 30 cities from ~4000 restaurants.
Goldfish Fund is venture capital firm which focuses on opportunities in Frontier Markets. Fund invests in early stage start-ups with great products and teams striding to build world-class companies.