HungryPanda, a food-ordering app for the Asian diaspora, picks up $55M at a valuation of around $500M
The food-delivery app, founded in London and aimed squarely at Chinese and other Asian consumers living outside their home countries, has picked up $55M.
Apps catering to the Chinese and wider Asian diaspora, especially urban consumers focused on food, can be big business. HungryPanda, one of the trailblazing startups in that market, is now announcing more funding.
HungryPanda, a pioneering food delivery app catering to Chinese and other Asian consumers living abroad, has secured a significant $55 million funding round. The company plans to utilize this capital to further develop its existing business and expand into new categories, such as groceries. As a result, HungryPanda's valuation has increased to around $500 million post-money, a substantial jump from its valuation of $289 million in 2020.
Founded in 2017, HungryPanda has established itself as the largest Asian overseas food delivery platform, rivaling other prominent players like Fantuan and FreshGoGo. The startup operates as a classic, three-sided, on-demand food marketplace, connecting customers with merchants and riders across 80 cities in 10 countries. With a strong presence, HungryPanda boasts an impressive customer base of 6 million users, 100,000 merchants, and 80,000 riders. The company is targeting $1 billion in gross transaction volume for this year, a testament to its rapid growth.
Notably, HungryPanda has achieved profitability, a rare feat for food delivery platforms. The company's success can be attributed to the dedication and hard work of its team, as well as the strength of its business model. According to founder and CEO Eric Liu, the company's focus on the younger demographic, particularly students, has enabled it to bypass some of the challenges associated with food delivery platforms. HungryPanda's "family-style" ordering model, where orders are doubled or tripled, makes individual deliveries more profitable.
The app was founded by Liu, who was frustrated by the lack of authentic Asian food options during his time as a student in the UK. He created HungryPanda to provide a platform for Chinese and other Asian consumers to order food from their favorite restaurants, with menus and information available in their native language.
HungryPanda's success can also be attributed to the growing demand for authentic Asian food among consumers. The Chinese diaspora alone is estimated to be over 50 million people globally, and there is a growing trend of consumers seeking out authentic Asian cuisine. The company's focus on catering to this demand has enabled it to capitalize on this trend.
The funding round was led by Mars Growth Capital, with previous backers Perwyn, Kinnevik, 83North, and Felix also participating. With this significant investment, HungryPanda is poised to continue its rapid growth and expansion into new markets, further solidifying its position as a leading player in the Asian food delivery space.