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 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 Swiggy, 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.