Swiggy has amassed millions of users in India, helping them order food and groceries online in the country. The seven-year-old startup, India’s top-rated food tech, is now looking to reach out to eat-outs.
The Bangalore-based startup said on Friday it has reached a definitive agreement with Indian conglomerate Times Internet to acquire Dineout, a popular restaurant and restaurant tech platform.
Neither of the startups shared the financial terms of the acquisition, but a source familiar with the matter told TechCrunch that the deal values Dineout at $200 million and is an equity deal.
Best known for its event service and dining out table reservations, Dineout has built a network of more than 50,000 restaurant partners across the country. The startup makes money by selling annual memberships to restaurants and customers and through its billing payment 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 a stand-alone app, the two firms said.
With the acquisition, Swiggy will be able to enter the eat-out business, a category that its main rival, Zomato, has been involved in for several years and was the only differentiating factor for the publicly traded company, whose market capitalization It has decreased. to around $5 billion in recent days. Swiggy, last valued at $10.7 billion, also recently bought a stake in bike and taxi platform Rapido and along with Zomato-backed restaurant management platform UrbanPiper.
“Dineout is a much-loved brand that enjoys loyalty from consumers and restaurants alike,” Sriharsha Majety, co-founder and CEO of Dineout, said in a statement.
“Times Internet and the founding team must be given credit for the transformational impact they have made on the dining experience through their products, technology and wide 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 invested around $50 million in the startup.
“We are proud of the positive impact that Dineout has created for consumers and restaurants, helping to streamline and enhance the experience of dining out. Swiggy + Dineout is a powerful combination, and we are excited to join forces with Swiggy as we continue to find ways to delight customers,” said Satyan Gajwani, Vice President of Times Internet, in a statement.