Swiggy has millions of Indian users who utilise the service to order meals and groceries online. The seven-year-old business, which is India’s most valuable food tech, is now attempting to reach out to diners. On Friday, the Bengaluru-based business shared that it has attained an agreement with Times Internet, an Indian conglomerate, to acquire Dineout, a renowned dining out and restaurant app platform.
The financial parameters of the purchase were not disclosed, but a source familiar with the situation told that the deal values Dineout at $200 million and is an all-equity deal. Dineout has built a network of around 50,000 restaurant associates across the nation and is best identified for its eating out table reservations and events service with discounts.
The brand generates revenue by presenting annual memberships to cafes and customers, as well as through its billing payment system. After the acquisition, Dineout’s four creators – Ankit Mehrotra, Nikhil Bakshi, Sahil Jain, and Vivek Kapoor will enter Swiggy. According to the two companies, the food giant will continue to operate as a standalone application.
Swiggy will be capable of entering the dining-out division with the acquisition, a type in which its primary rival, Zomato, has been active for several years and was the primary differentiating point for the publicly traded firm, whose market cap has slipped to around $5 billion in current days.
Swiggy, which was lately valued at $10.7 billion, also obtained a share in Rapido, a bike and taxi network, and 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 started in 2012 and bought by Times Internet two years later, with the latter investing around $50 million.
“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,” stated Satyan Gajwani, Vice Chairman of Times Internet, in a report.