Delivery Hero acquires Saudi HungerStation for $297 million
The “Delivery Hero” company said that it had bought all the remaining minority stakes – which represent 37% – in “HungerStation Holding Limited”, the sole shareholder in the Saudi “Hungerstation”, which operates in the Kingdom.
The total value of the deal amounted to $297 million (equivalent to 1.11 billion riyals), which Delivery Hero considered a very attractive purchase price, according to a statement issued by the company.
Founded in 2012, HungerStation is one of the leading Saudi food delivery companies, connecting customers with more than 10,000 partners. The company’s revenue increased by 36% last year to €609 million, and it posted a positive EBITDA, including group costs, of more than €50 million.
“We believe in Saudi Arabia’s vision, ambition and potential for 2030, and we are committed to contributing to its continued success through HungerStation,” said Niklas Ostberg, CEO and Co-Founder of Delivery Hero. “I look forward to continuing to build great products and deliver an amazing experience to our Saudi customers.”
Saudi companies are the destination for bold investment in the region
The acquisition step comes after the General Authority for Competition in Saudi Arabia rejected last year the acquisition offer submitted by “Delivery Hero” to acquire “The Chefs”, the “Hungerstation” competitor in the Kingdom.
During the first half of this year, startups in the Kingdom of Saudi Arabia attracted investments exceeding $446 million (1.7 billion riyals), a 27% decrease from the numbers recorded in the same period last year, according to a report issued by MAGNiTT.
The Kingdom topped the countries of the Middle East and North Africa in terms of the value of venture investment during the first six months of 2023, acquiring 42% of the total capital pumped by venture capital companies in the region, after this percentage was 31% in the same period of 2022.