Baltic States – CIS, Investments, Latvia, Markets and Companies, Mergers and take-overs, Technology

The price of the deal has not been disclosed but it is estimated at several tens of millions of euro.

We believe that food delivery and takeaway business in Central and Eastern European Countries is nearing its stabilization phase. We expect the segment to grow steadily over the next two to three years, and we plan to become the leader also in other European countries, said Foodout Group’s CEO Tomas Martunas. In his words, the company will continue to strengthen its foothold and expand with the help of investments that will be made by the end of this year.

After the merger, Foodout Group will be represented in six countries: Ukraine, Belarus, Lithuania, Estonia and Iran. Foodout Group is already the leader in the food delivery segment in Lithuania, Latvia and Ukraine, and its aim is to become leader also in the other countries by 2018.

Lauris Kokins, director of Foodout.lv, said that the company has been showing strong local growth in the past couple of years and that it sees growth opportunities also in other countries with growing Internet penetration and use of mobile services, which is an important aspect for food delivery services.

The joint company also plans to open a new branch in Belarus in the nearest future, the group’s representatives said.

As reported, Foodout has bought a stake in Ukraine's food ordering website Eda.ua and also plans to launch operations in Belarus.

The company also announced the establishment of Foodout Group, which will be in charge of Foodout operations in Lithuania, Latvia, Estonia, Ukraine, Belarus and Iran.

The group last year posted EUR 10 million in revenue. Revenue for the first five months of 2017 surged by 53 percent to EUR 6 million.

Foodout Group belongs to investment funds CIG and Goldfish Fund.