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Deepti Sri · · 1 min readReport: Japanese telco major KDDI to buy 20% stake in food delivery app Menu
“Japan’s KDDI is set to invest in the country’s third-largest food delivery service, Menu, as the telecom operator seeks to expand its mobile payment platform by making use of delivery data amid flat growth in the telecommunications business,” Nikkei Asia reported.
Details:
- Under the deal, which is expected to be struck this month, telecom firm KDDI will take a 20% stake in Menu by investing about 5 billion yen (US$45.6 million) in the company.
- The partnership will allow Menu’s customers to pay for items through KDDI’s smartphone payment service. Data from Menu’s usage history will be integrated along with KDDI’s base of 30 million customers to analyze customer preferences.
Context:
- The latest development underscores the increased demand for food delivery amid pandemic-induced lockdowns and rising health consciousness by consumers.
- Currently, Menu is owned by Reazon Holdings, which runs adtech and gaming businesses. KDDI will take a stake in Menu through the allocation of new third-party shares by the food delivery startup.
Currency converted from US dollar to Chinese yuan: US$1 = 6.37 yuan.
Editing by Collin Furtado and Jaclyn Tiu
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