Even as India's consumer internet sector, including horizontal e-commerce, witnesses signs of consolidation, Foodpanda India co-founder and CEO Saurabh Kochhar believes it is an important part of the evolutionary process.
“Consolidation is not negative, it is a sign of progression,” he said during a fireside chat at News Corp VCCircle E-commerce Summit in Mumbai.
A lot of investors root for consolidation so that they can secure exits, Kochhar said.
He did not rule out the scope for consolidation in the online food business where Foodpanda competes with Swiggy and Zomato in India.
“There is always scope for consolidation. The question is, whether you add value to each other. Is consolidation the last option you are left with, or do you have a concrete game plan? That is what will play out in the next year-and-a-half and that is when we should look at the next step,” he added.
As for a strategic or business collaboration between Foodpanda and its rival Swiggy, Kochhar said “They (Naspers) have taken minority positions in both the companies. It is not majority position on either side. With that, of course, collaboration could increase. I can’t deny that but nothing on the cards as of now."
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