Mail.ru has acquired Russian food delivery startup ZakaZaka in an all-cash deal that values the company at $20 million.

Mail.ru bought a 90.09% stake valued at $18 million. The Russia internet giant had previously invested in the startup, owning 9.91%.

The St. Petersburg-based ZakaZaka is described as the number two food delivery service in the Russian market with 2,600 restaurants signed up and revenues of 56 million roubles (€900,000) in 2016.

This acquisition has led to even more consolidation in the food delivery market at the hands of Mail.ru. In November 2016, it bought Delivery Club, which was then the number one player in the market.

Boris Dobrodeev, CEO of Mail.ru, said that the firm is looking to further consolidate its place in the Russian online food delivery business. Delivery Hero has a strong market share in the big urban centres like Moscow and St. Petersburg while ZakaZaka has a good grip on areas outside of these cities.

“As a result this acquisition significantly strengthens the reach of our food delivery business. As with Delivery Club we will look to integrate ZakaZaka into the group quickly,” said Dobrodeev.

“Our cooperation with Mail.ru Group allows for natural synergy,” commented ZakaZaka cofounder Ruslan Gafurov, “on one hand, there is Mail.ru Group’s huge mobile audience and extensive experience in mobile segment; on the other hand, there is ZakaZaka’s great retention rate, strong presence all around Russia and high purchase frequency.”

The deal is not subject to any third party approval.

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