Swiggy has millions of users in India, allowing them to order food and groceries online. The seven-year-old startup, India’s most valuable food tech, is now attempting to reach out to individuals who eat out.
The Bengaluru-based firm said on Friday that it has struck a definitive agreement to buy Dineout, a popular dining out and restaurant software platform, from the Indian giant Times Internet at an undisclosed valuation.
Dineout offers a network of over 50,000 restaurant partners in the country and is best known for its eating out table reservations and events service. The company generates revenue by offering annual memberships to restaurants and customers, as well as through its billing payments system.
According to the two companies, 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.
Swiggy will be able to enter the dining-out sector with the acquisition, a category in which its main rival, Zomato, has been active for several years and was the only differentiating factor for the publicly-traded firm, whose market valuation has recently dipped to around $5B. Swiggy, which was recently valued at $10.7B, also acquired a share in Rapido, a bike and taxi network, and UrbanPiper, a restaurant management platform supported by Zomato.
“Dineout is a well-loved brand that enjoys loyalty from both consumers and restaurants,” said Dineout co-founder and CEO Sriharsha Majety in a statement.
“Through their products, technology, and large variety of restaurant partners, Times Internet and the founding team should be acknowledged for the dramatic influence they have brought about in 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 acquisition.”
Dineout was created in 2012 and was acquired two years later by Times Internet, which has subsequently invested around $50M in the firm.
“We are happy of the good impact Dineout has had on consumers and restaurants by streamlining and improving the dining experience. Swiggy + Dineout is a powerful combination, and we are pleased to collaborate with Swiggy as we seek for new ways to delight customers,” said Satyan Gajwani, Vice Chairman of Times Internet, in a statement.