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This article was published on June 13, 2013

    Delivery Hero invests $5 million in India-based food delivery startup TastyKhana

    Delivery Hero invests $5 million in India-based food delivery startup TastyKhana Image by: Getty Images/iStockphoto
    Jon Russell
    Story by

    Jon Russell

    Jon Russell was Asia Editor for The Next Web from 2011 to 2014. Originally from the UK, he lives in Bangkok, Thailand. You can find him on T Jon Russell was Asia Editor for The Next Web from 2011 to 2014. Originally from the UK, he lives in Bangkok, Thailand. You can find him on Twitter, Angel List, LinkedIn.

    Heroically-monikered food delivery company Delivery Hero is investing $5 million in TastyKhana, a Delivery Hero-like service based in India, as part of a wider partnership between the two companies, and a prologue to its entry into the country.

    Delivery Hero is actually already an investor in TastyKhana — having participated in the company’s seed round in early 2012 — and the two will come together so that the Indian startup can “understand global best practices and work towards delivering a better experience”.

    TastyKhana says it serves seven cities across the country, which covers more than 3,000 restaurants. It says a 400 percent growth in orders since the beginning of 2012 is one of the factors that has prompted Delivery Hero to up its commitment to the firm — which offers apps for iOS, Android and BlackBerry, in addition to its Web-based service.

    tastykhana

    The Pune-based company doesn’t provide figures for the Delivery Hero investment in its blog post, but a press release confirms that the deal is worth $5 million in fresh funds. Off the back of that — and the closer collaboration — we can expect TastyKhana to begin expanding into new cities quicker than a delivery boy ferrying piping hot pizza to a customer.

    Niklas Östberg, CEO of Delivery Hero, explains how the company can help out its investee in India:

    The strength in our core markets allows us to invest in smaller, innovative companies like TastyKhana to accompany them with technological know-how and financial resources on their way to the top.

    Berlin, Germany-based Delivery Hero currently covers 14 countries, and it looks like its entry into India will be via TastyKhana. That’s the very same approach that rival Just-Eat opted for when it entered India by acquiring a 60 percent slice of HungryZone.

    To date, Delivery Hero has raised more than $100 million in investment. Its backers include Kite Ventures, Team Europe and Tengelmann Ventures.

    Headline image via Thinkstock