Rocket Internet-owned Foodpanda is reportedly struggling to sell its India operations even for $10-15 million.
The Berlin-based Internet company has been looking to reduce its exposure to the Indian market by selling its e-commerce firms Foodpanda, FabFurnish, and PrintVenue amid intensifying competition in the sector.
"Foodpanda has held talks with its competitors in India, who have been pitched with a sale value of $10-15 million," a source familiar with the matter told TOI.
Although the price is too low, the company is yet to find a buyer. This indicates that it may finalise to close its India operations soon.
"Both Zomato and Swiggy have been approached for a buyout, besides one larger horizontal company. But, Rocket is yet to garner keen interest from possible suitors for Foodpanda," another source told the daily.
"The company has no plans to exit from the Indian market," said Saurabh Kochhar, CEO, Foodpanda India, commenting on the report.
In September last year, Rocket Internet was reportedly planning to change its strategy and form a venture capital fund to invest directly in firms in India rather than "incubating startups".
Foodpanda had raised funds worth nearly $310 million from the Samwer Brothers of Rocket Internet and Goldman Sachs last year.
Despite making huge investments in India to fend off competition from rivals Zomato, Swiggy and TinyOwl, Foodpanda has failed to see any significant improvement in its business. Reports of "an alleged fraud and systematic discrepancies" in Foodpanda's operations had also surfaced last year.
Last month, the online food ordering firm was reported to have cut nearly 500 jobs and shut down delivery operations in as many as six cities. Other players in the online food ordering business have also taken similar restructuring measures, as the demand for such services has fallen short of their expectations.
The Mumbai-based online food ordering start-up, TinyOwl, laid off 112 employees in November last year, in just three months after cutting 160 jobs in September.