Illustrative photo (Source: vietnamnet.vn)

Hanoi (VNA) – The Republic of Korean-based food-tech firm Woowa Brothers Corp has acquired online food ordering platform Vietnammm.

The value of the buyout from Viet Nam MM Co., Ltd was undisclosed.

The move is considered the quickest way for the Korean startup, which owns the Baedal Minjok food delivery app, to gain market share in Vietnam, plus it helps save time on market surveys and personnel recruitment.

Founded in February 2011, Vietnammm is one of the pioneering players in Vietnam’s food delivery sector.

Woowa Brothers has raised 320 million USD in 2018 with a valuation of 2.6 billion USD. The company said it would use the new capital to expand overseas.

Market research firm Euromonitor said the food delivery market in Vietnam is currently valued at 33 million USD and may exceed 38 million USD by 2020.

The percentage of users of food delivery services has also increased rapidly, although it is limited to urban areas where a large number of office workers are employed.

According to statistics from the Association of Vietnamese Retailers, only 30 percent of urban residents used food delivery services in Hanoi and Ho Chi Minh City in 2017, but this number rose to more than 70 percent in the first six months of 2018.-VNA