Swiggy has announced a deal with Times Internet to buy Dineout, a table booking company. The plan is to reach out those who go out to eat
As it looks to reach out those who like dining out, Bengaluru-based Swiggy announced on Friday that it had achieved a formal agreement with Indian giant Times Internet. Under the $200 million deal, Swiggy will buy Dineout, a prominent eating out and restaurant software platform.
The financial specifics of the acquisition were not disclosed, but a person familiar with the subject told the media that the agreement values Dineout at $200 million and is an all-equity transaction.
According to the two companies, Dineout’s four founders — Ankit Mehrotra, Nikhil Bakshi, Sahil Jain, and Vivek Kapoor — will join Swiggy following the purchase, and the platform will continue to function as an independent app.
Swiggy will be able to join the dining-out sector with the purchase, a segment in which its main rival, Zomato, has been active for some years and was the primary differentiating element for the publicly traded firm, whose market valuation has recently dipped to about $5 billion. Swiggy, which was reportedly valued at $10.7 billion, recently acquired a stake in Rapido, a bike and taxi network, and funded restaurant management platform UrbanPiper with Zomato.
Swiggy co-founder and CEO Sriharsha Majety said, “Dineout is a well-known brand with strong support from both customers and restaurants. Through its products, technology, and wide range of restaurant partners, Times Internet and the founding team should be recognized for the significant impact they have had on 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 purchase.”
Dineout was created in 2012 and was bought two years later by Times Internet, which has subsequently invested around $50 million in the firm.
Satyan Gajwani, Vice Chairman of Times Internet, stated, “We are happy of the good impact Dineout has had on customers and businesses by streamlining and improving the dining experience. Swiggy + Dineout is a strong combination, and we are pleased to collaborate with Swiggy as we seek for new ways to delight consumers.”
Dineout offers a network of over 50,000 restaurant partners in the country and is best known for its eating out table bookings and events service. The company generates revenue by offering yearly memberships to restaurants and consumers, as well as through its billing payments system.