Swiggy has brought together millions of users in India, helping them order food and groceries online in the country. The seven-year-old startup, India’s most beloved food tech, is now looking to reach those who go out to eat.
The Bengaluru-based startup announced on Friday that it has entered into a definitive agreement with Indian conglomerate Times Internet to acquire Dineout, a popular dining and dining technology platform.
None 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 is an all-stock deal. .
Best known for its restaurant reservations and event service, Dineout has built a network of over 50,000 partner restaurants nationwide. The startup makes money by selling annual subscriptions to restaurants and customers and through its pay-by-invoice solution.
Dineout’s four founders – Ankit Mehrotra, Nikhil Bakshi, Sahil Jain and Vivek Kapoor – will join Swiggy after the acquisition and the platform will continue to operate as an independent app, the two companies said.
With the acquisition, Swiggy will be able to enter the restaurant sector, a category in which its main rival, Zomato, has been playing for several years and was the only differentiator for the publicly traded company, whose market capitalization has fallen. around $5 billion in recent days. Swiggy, last valued at $10.7 billion, recently bought a stake in bicycle and taxi platform Rapido and, alongside Zomato, backed restaurant management platform UrbanPiper.
“Dineout is a highly regarded brand that enjoys consumer and restaurant loyalty,” Sriharsha Majety, co-founder and chief executive of Swiggy, said in a statement.
“Times Internet and the founding team must be credited for the transformational impact they have brought to the dining experience through their products, technology and vast selection of restaurant partners. The acquisition will allow Swiggy to explore synergies and deliver new experiences in a high usage category.
Dineout was founded in 2012 and was acquired by Times Internet two years later, which has since deployed around $50 million into the startup.
“We are proud of the positive impact Dineout has created for consumers and restaurants, helping to streamline and improve the dining experience. Swiggy + Dineout is a powerful combination, and we are thrilled to partner with Swiggy as we continue to look for ways to delight customers,” said Satyan Gajwani, vice president of Times Internet, in a statement.