Best in Class Treasury Solution in ASEAN Highly Commended: Foodpanda

Published: Jan 2024
Photo of Abhishek Chatterjee, HSBC, Debashish Sinha, Hareez Latiff and Chedia Haddouchi, Foodpanda.

Photo of Abhishek Chatterjee, HSBC, Debashish Sinha, Hareez Latiff and Chedia Haddouchi, Foodpanda.

Chedia Haddouchi

Head of Treasury, APAC
Foodpanda logo

Foodpanda is an online food and grocery delivery platform owned by Berlin-based Delivery Hero. Foodpanda operates as the lead brand for Delivery Hero in Asia, with its headquarters in Singapore. It is currently the largest food and grocery delivery platform in Asia, outside of China, operating in 11 markets across Asia.

in partnership with

HSBC logo

Foodpanda implements solutions across Asia to support explosive growth

The challenge

Foodpanda handles hundreds of thousands of orders a day and its explosive growth in the region had necessitated a reworking of treasury operations, which had comprised multiple banking relationships and a lack of automation on key processes which they wanted to address.

The solution

The company consolidated its main Asia Pacific banking operations to HSBC in nine markets, to fulfil four key objectives across the company’s full operational cycle with a range of regional and domestic solutions:

  • Streamline bank account structure.

  • Enhance liquidity consolidation, visibility and control, and yield on surplus funds.

  • Gain efficiencies on process and cost through automation and standardisation, especially on reconciling the high volumes of payments and collections they were handling.

  • Enable innovative digital experiences for partners and customers.

Foodpanda developed a process that enabled the bulk execution of payments via real-time payment (RTP) rails by uploading payment files to HSBC directly from their SAP system through a host-to-host connection. Initially launched in Singapore, the solution was expanded to Thailand and Malaysia, allowing Foodpanda’s partners to receive funds in seconds.

An automated withholding tax generation and direct issuance process was also created to further reduce manual effort for Foodpanda’s finance team.

Virtual accounts (VA) were introduced to help automate identification of incoming payments from merchants and reduce the overall number of physical collections accounts. VA is live in Singapore and further implementations are ongoing elsewhere in Asia Pacific ongoing due to the solution’s success.

Foodpanda also worked to expand the number of supported digital payment methods in their markets of operation to enhance the customer experience and improve customer reach. These included PayMe, a popular peer-to-peer payment app in Hong Kong with over three million users, in May 2023.

Through close collaboration with Foodpanda, HSBC has also managed to develop a highly efficient ticket management solution that has significantly reduced time spent on resolving payment incidents. The platform also allows both teams to do analysis on the tickets, trends and solutions.

Best practice and innovation

Foodpanda is one of the first food delivery companies to enable payouts via RTP in Malaysia and Thailand. Up to 100,000 payments are now executed via this method in these two markets, showing the commercial viability of using RTPs in both markets to support the large daily payment volumes that are typical in their industry.

The expansion of supported payment options regionally has enhanced the customer experience for Foodpanda. PayMe is now the third most utilised payment method on the channel, reflecting the high consumer uptake.

US$1m has been generated through the interest enhancement solution, enhancing yield on balances in both free and restricted currencies across the company’s various markets of operation. Foodpanda can manage interest conditions centrally and eliminate the need for interest to be negotiated in each local market as the latest market rates are provided. Interest is credited directly to each involved account, directly benefiting the respective local business.

Key benefits

  • Cost savings.

  • Number of banking partners/bank accounts reduced.

  • Process efficiencies.

  • Improved key performance indicator (KPI) metrics.

  • Increased automation.

  • Risk mitigated.

  • Improved visibility.

  • Errors reduced.

  • Manual intervention reduced.

  • Future-proof solution.

Harish Venkatesan

Country Head, International Subsidiary Banking, Commercial Banking, HSBC Singapore

The ASEAN region is defined by the speed at which it is constantly evolving, driven by a young, digitally-savvy population, and the increasing ease of access to web and mobile technology. This has spurred the massive growth of tech companies, who are constantly striving to deliver greater speed and convenience for customers. Our work with Foodpanda is a testament to the work we have done in developing our own digital capabilities to help corporates in this fast-paced and highly competitive industry meet these goals, which makes us well-positioned to continue helping these companies achieve operational excellence now and into the future.

in partnership with

HSBC logo

The Adam Smith Awards Asia is the industry benchmark for best practice and innovation in corporate treasury. The 2023 awards attracted 450 nominations. To find out more please visit treasurytoday.com/adam-smith-awards-asia

All our content is free, just register below

As we move to a new and improved digital platform all users need to create a new account. This is very simple and should only take a moment.

Already have an account? Sign In

Already a member? Sign In

This website uses cookies and asks for your personal data to enhance your browsing experience. We are committed to protecting your privacy and ensuring your data is handled in compliance with the General Data Protection Regulation (GDPR).