Global online food ordering firm Foodpanda Group is reportedly planning to sell its Indian arm as the competition has become fierce in the food-ordering business.
The Berlin-headquartered company has contacted at least three of the top companies in the country's online food ordering space, said sources close to the developments.
"The talks started sometime in August and are in very early stages," Livemint quoted sources as saying.
Backed by Rocket Internet, Foodpanda is now looking to change its strategy as the going gets tough in the Indian market.
Founded in 2012, Foodpanda operates in 40 countries. It is facing intense competition from TinyOwl, Swiggy and Zomato in India.
Senior executives of the company in Germany along with co-founder and group chief executive Ralf Wenzel are reportedly planning on selling Foodpanda.
"I can confirm that we are not planning or intending to sell Foodpanda India and there are no discussions regarding that matter. We are very happy with Foodpanda's developments in India and will keep on investing into India as one of our core markets," Wenzel said.
Last month, an ET report said that Rocket Internet was looking to sell its top e-commerce firms Jabong, Foodpanda and FabFurnish amid intense competition in the Indian online retail sector.
Some analysts said that a shift in the company's strategy underlines that its model of operations in India has been unsuccessful.
"(Rocket Internet's) model of owning 90% of a venture simply doesn't motivate the founders, who, for obvious reasons, are not going to have the same values as that of Narayana Murthy or a Nandan Nilekani. The risk is imminent," said a fund manager.