The deal allows the leading food delivery service in CIS countries to expand its operations into Ukraine
LONDON, July 30, 2019 /PRNewswire/ -- Menu Group, a UK-registered food delivery startup operating in Armenia, Georgia, and Belarus, completes the acquisition of Eda.ua. Eda.ua, its largest competitor in Ukraine, allows Menu Group to enter the promising Ukrainian market, which is growing by 20-25% per year.
Strategic acquisition provides Menu Group with access to Eda.ua's established business operations in Ukraine, which cover 29 cities and unite over 1500 restaurants on a single platform. Founded in 2014, Eda.ua is the largest food-ordering marketplace in Ukraine with over 500,000 of its existing users spreading across 29 different cities. In 2018, the company generated $5.5 million in GMV, and aims to show a 200% growth increase in 2019.
Following the acquisition, Menu Group plans to integrate its own logistics system with Eda.ua and gradually begin to use the Menu.ua platform, offering all other restaurants attractive terms to grow their sales by 10-50%. In the next year, Menu.ua will deliver food in at least 5 Ukrainian cities using a hybrid business model, combining a marketplace and its own delivery chain.
Menu Group has noticed high potential in the Ukrainian market due to its growth rate of 20-25% a year. Demand for food delivery is growing exponentially in Ukraine, powered by the adoption of mobile Internet. Over 60% of the Ukrainian population use mobile Internet and approximately 15-20% of that 25 million place at least one online order each year. Local restaurants have a significant incentive to cooperate with food delivery services; currently they generate up to 20% of sales online, with a potential growth of up to 50%.
"We are excited to have an opportunity to work for the clients in Ukraine. The work that the professional Eda.ua team led by CEO Evgeny Kazantsev is doing on the Ukrainian market is an inspiration for us, and we are thrilled to welcome them to Menu's winning team," says Vahan Kerobyan, CEO at Menu Group.
"As a cofounder of Eda.ru, ChernoteskyIntestmentGroup was always vouching for scaling and new partnerships, so we see a tremendous opportunity in this acquisition," says Vladimir Krivko, Managing Partner at ChernoteskyIntestmentGroup, explaining that the deal included share swap component, too.
For Menu Group, this deal is a part of strategic expansion in FSU. First launched in Armenia in 2012, the company is now also dominating in Georgia and Belarus. Since the start, Menu Group has raised a modest $6 million in investments from angels and early stage investors, as well as efficiently expanded and then dominating in 4 countries of FSU region ex-Russia. In 2019, the company is aiming for a GMV of $35 million and $10 million in revenue.
"Acquisition of Eda.ua is a part of the Menu Group expansion strategy in FSU for the next 3 years, approved by the company's board of directors," says Levon Oganesyan, Managing Partner at SOLventures and a founder of Delivery Club. Additionally, Menu Group is on track to successfully raising $10 million towards launching operations in Kazakhstan and other countries of the region.
About Menu Group
First launched in Armenia in 2012, Menu Group is now a leader among food delivery services in Georgia, Belarus and Ukraine. Menu Group has raised a modest $6 million in investment from SOLventures, Granatus Ventures, Perea Capital Partners, Hayastan 1 and others.
Eda.ua is a leading Ukrainian food delivery service. Founded in 2014, the project now covers 29 cities and is working with over 1500 restaurants in Ukraine.
SOURCE Menu Group