Millions of people in India use the online grocery and food ordering service, called Swiggy. 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 a popular dining out and restaurant tech platform.
A source with knowledge of the deal said that the acquisition is worth $200 million and is an all-equity deal.
Over 50,000 restaurant partners are part of the Dineout network, which is best known for its dining out table reservations and events service. The startup makes money by selling memberships to restaurants.
The platform will continue to operate as an independent app after the acquisition, the two firms said.
Zomato, the only differentiating factor for the publicly-listed firm, has had a play in the dining-out business for several years and was the only differentiating factor for the acquisition. Zomato backed restaurant management platform UrbanPiper and bike and taxi platform Rapido have been bought by Swiggy.
Sriharsha Majety, co-founder and chief executive of Dineout, said in a statement that the brand enjoys loyalty from both consumers and restaurants.
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.
Times Internet acquired Dineout two years after it was founded, and has invested $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. The Vice Chairman of Times Internet said in a statement that they are excited to join forces with Swiggy as they look for ways to delight customers.
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