Delivery Hero raises €2.3B to fund acquisition of South Korea’s food delivery app Woowa Brothers

By 16/01/2020June 4th, 2021No Comments

A few weeks back, food delivery giant Delivery Hero signed an agreement with shareholders, including senior management of Woowa Brothers Corp. (“Woowa”) to expand its footprint in Asia.

In a latest development, Delivery Hero raised €2.3 billion (approx $2.56 billion) from the sale of new shares and convertible bonds to fund its $4 billion (approx €3.6 millions) acquisition of South Korea’s food delivery app owner Woowa Brothers.

The news has been confirmed by Niklas Östberg, CEO and co-founder, Delivery Hero.

Furthermore, the German food delivery giant said that it received gross proceeds of €1.75 billion from two convertible bonds issues and €571 million from a capital increase after selling new shares equal to 4.3% of its equity capital.

For the uninitiated, Woowa operates the largest online food delivery service in South Korea, Baedal Minjok, which generated approximately 100 million orders in Q3 2019.

In the nine months of 2019, Woowa grew revenues in Korea by 84% year-on-year to € 301 million, with GMV reaching € 4.6 billion and achieved an EBITDA of ~ € 3 million. Woowa also operates a business in Vietnam, which fulfilled approximately 1.5 million orders in Q3 of 2019.