Swiggy Has Acquired Dineout For Rs 1600 Crore: Will Swiggy Start Table Bookings, Events At Restaurants?
The Indian food delivery and quick product services sector has boomed over the past few years and is highly competitive. In order to break into the dining-out business, one of India’s top food aggregators Swiggy is known to acquire the restaurant tech and dining out platform Dinoeout.
Reports have confirmed that Swiggy has entered into a partnership with the country’s largest digital products company Times Internet for the acquisition of Dineout.
Here’s everything you need to know about the deal going forward.
Swiggy to Acquire Dineout in Agreement with Times Internet
The country’s two leading food aggregating platforms Swiggy and Zomato have been close competitors when it comes to the highly competitive food delivery and quick services.
Zomato was listed on the Indian stock market last year, and has been tumbling ever since. It’s market valuation has spiraled down, almost halving its listing value, and is now valued at around $5 billion.
On the other hand, Swiggy’s market valuation is noted at around $10.7 billion.
Currently, one of the parameters where Zomato’s services outperform or lie ahead of Swiggy’s, is the former’s dining-out business, which Zomato has been providing since several years now, and even has Zomato Pro, which allows customers to enjoy discounted services on many tied-up restaurants for dining out.
With Swiggy now entering into a definitive agreement with Times Internet to acquire Dineout, which is a very popular dining out and restaurant tech platform, it can give a solid competition to Zomato.
Valuation of the Deal and More Details
Even though neither Swiggy nor Dineout has publicly shared any financial related to the acquisition, TechCrunch has informed sources quoting the valuation of the deal at $200 million. It would be an all-equity deal, add sources.
It has also been informed that once the acquisition deal is completed, Dineout’s four founders: Ankit Mehrotra, Nikhil Bakshi, Sahil Jain and Vivek Kapoor will join Swiggy, and the restaurant-tech platform will continue to operate as an independent app.
“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,” said the co-founder and chief executive of Swiggy.
“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.
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