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.
The Bengaluru-based business said on Friday that it has reached an agreement with Times Internet, an Indian conglomerate, to buy Dineout, a prominent dining out and restaurant software platform.
The financial parameters of the sale were not disclosed, but a source familiar with the situation told TechCrunch that the deal values Dineout at $200 million and is an all-equity deal.
Dineout has created a network of over 50,000 restaurant partners across the country and is best recognised for its eating out table reservations and events service. The company generates revenue by offering annual memberships to restaurants and customers, as well as through its billing payment system.
Following the acquisition, Dineout’s four founders – Ankit Mehrotra, Nikhil Bakshi, Sahil Jain, and Vivek Kapoor – will join Swiggy, and the platform will continue to operate as a standalone app, according to the two companies.
Swiggy will be able to enter the dining-out sector with the acquisition, a category in which its main competitor, Zomato, has been active for several years and was the primary differentiating point for the publicly traded company, whose market cap has slumped to around $5 billion in recent days.
Swiggy, which was recently valued at $10.7 billion, also just purchased a stake in Rapido, a bike and taxi network, as well as Zomato-backed restaurant management platform UrbanPiper.
In a statement, Sriharsha Majety, co-founder and CEO of Dineout, stated, “Dineout is a well-loved brand that has loyalty from both consumers and restaurants.”
“Through their products, technology, and large variety of restaurant partners, Times Internet and the founding team should be acknowledged for the dramatic influence they have brought about in the dining out experience.” Swiggy will be able to investigate synergies and create new experiences in a high-use category as a result of the acquisition.”
Dineout was started in 2012 and bought by Times Internet two years later, with the latter investing around $50 million.
“We’re happy of the great impact Dineout has had on consumers and restaurants by streamlining and improving the dining experience.” In a statement, Satyan Gajwani, Vice Chairman of Times Internet, stated, “Swiggy + Dineout is a great combination, and we are pleased to join forces with Swiggy as we continue to seek for ways to satisfy customers.”
