Indian food delivery giant Swiggy is acquiring Dineout for $200 million

Swiggy has amassed millions of users in India, helping them order food and grocery online in the country. The seven-year-old startup, India’s most valued food tech, is now looking to reach those who go out to eat.

The Bengaluru-headquartered startup said on Friday it has reached a definitive agreement with the Indian conglomerate Times Internet to acquire Dineout, a popular dining out and restaurant tech platform.

Neither of the startups shared the financial terms of the acquisition, but a source familiar with the matter told TechCrunch the deal values Dineout at $200 million and it’s an all-equity deal.

Best known for its dining out table reservations and events service, Dineout has built a network of over 50,000 restaurant partners in the country. The startup makes money by selling annual memberships to restaurants and customers and through its billing payments solution.

Dineout’s four founders – Ankit Mehrotra, Nikhil Bakshi, Sahil Jain and Vivek Kapoor – will join Swiggy following the acquisition and the platform will continue to operate as an independent app, the two firms said.

With the acquisition, Swiggy will be able to enter the dining-out business, a category its chief rival, Zomato, has had a play in for several years and was the only differentiating factor for the publicly-listed firm, whose market cap has dropped to about $5 billion in recent days. Swiggy, last valued at $10.7 billion, recently also bought stake in bike and taxi platform Rapido and alongside Zomato backed restaurant management platform UrbanPiper.

“Dineout is a well-loved brand that enjoys loyalty from both consumers and restaurants,” said Sriharsha Majety, co-founder and chief executive of Dineout, in a statement.

“Times Internet and the founding team should be credited for the transformational impact they have brought about in the dining out experience through their products, technology, and vast selection of restaurant partners. The acquisition will allow Swiggy to explore synergies and offer new experiences in a high-use category.”

Dineout was founded in 2012 and was acquired by Times Internet two years later, which has since deployed about $50 million into the startup.

“We are proud of the positive impact that Dineout has created for consumers and restaurants, helping streamline and improve the eating out experience. Swiggy + Dineout is a powerful combination, and we are excited to join forces with Swiggy as we continue to look for ways to delight customers,” said Satyan Gajwani, Vice Chairman of Times Internet, in a statement.

Credit belongs to : www.techcrunch.com

You May Also Like

Sequoia Capital plays Nostradamus (again)

Sequoia Capital, the storied, 50-year-old venture firm, has become known over the years for using sweeping memos to warn the founders in its portfolio about market shifts after the shift has become somewhat obvious. Still, while it’s tempting to poke fun at these missives — its “R.I.P Good Times” in 2008 and its “Black Swan” […]

Starlink adds RV plan that provides roving coverage

staStarlink has added yet another new service tier, its second diversification of its offerings in 2022, after it introduced a Business option earlier this year. The new ‘RV’ plan comes with some noteworthy differences vs. its standard service — including the ability to stop and start service whenever you want. Starlink for RVs uses the […]
error: Content is protected !!