Delivery Hero closes acquisition of Saudi HungerStation for $297 million

Delivery Hero announced that it has purchased all  remaining minority shares (37%) of HungerStation Holding Limited, the sole shareholder of Saudi-based and Saudi-operating HungerStation. 

With a total purchase price of US$297 million (equivalent to 1.11 billion riyals),  Delivery Hero considered a very attractive acquisition price, according to a company statement. 

Founded in 2012, HungerStation is one of Saudi Arabia's leading  food delivery companies, connecting customers with his over 10,000 partners. The company's revenue last year increased by 36%  to €609 million, achieving positive EBITDA including enterprise costs of over €50 million.  

“We believe in the Kingdom of Saudi Arabia’s 2030 vision, ambition and potential, and are committed to contributing to its ongoing success through HungerStation.” said Niklas Ostberg, co-founder and CEO  of Delivery Hero. “I look forward to continuing to build great products and delivering an amazing experience for our Saudi customers”.

The acquisition move comes after Saudi Arabia's Directorate General of Competition rejected Delivery Hero's offer to buy Saudi Hunger Station competitor "The Chefz" last year. 

According to a report published by MAGNiTT, startups in the Kingdom of Saudi Arabia attracted more than US$446 million (1.7 billion riyals) of investment in the first half of this year, down 27% year-on-year. 

Saudi Arabia was the top Middle Eastern and North African country in terms of  venture investment in the first half of 2023, capturing 42% of the total capital outflows of venture capital firms in the region, compared with 31% in the same period in 2022.