Swiggy will be acquiring Dineout, a restaurant reservation and tech platform, the company announced on Friday, May 13. It will be acquiring the company from Times Internet. With this, the competition between Swiggy and Zomato will intensify, as Swiggy so far did not have a footing in the restaurant discovery and reservation space. As per an announcement, Swiggy said that Dineout will continue to function as an independent app post acquisition, unlike its competitor.
Swiggy said the acquisition will help it to “cater to every food occasion” and capitalise on Dineout’s assets and position in the dining out space. It added that the company will benefit from Dineout’s network of 50,000 restaurant partners and its experience.
Dineout was founded in 2012 by Ankit Mehrotra, Nikhil Bakshi, Sahil Jain, and Vivek Kapoor, and was acquired by Times Internet in 2014 reportedly at an estimated value of Rs 60 crore. When the acquisition by Swiggy is completed, the founders will join Swiggy as well.
Swiggy CEO Sriharsha Majety said, “Dineout is a well-loved brand that 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,” said.
“The acquisition will allow Swiggy to explore synergies and offer new experiences in a high-use category,” he added.
Dineout’s Ankit Mehrotra said in a statement that Dineout wanted to revolutionise the restaurant industry. We strongly feel that with Swiggy’s deep understanding of the ecosystem and our shared passion for a superior consumer and restaurant experience, our joint forces will help provide a holistic platform in this industry,” he said.
The size of the deal was not disclosed by Swiggy. Techcrunch reported that Dineout has been valued at $200 million and is an all-equity deal.
This is Swiggy’s third investment this year. It led a $180 mn round into Rapido and invested (along with Zomato) into UrbanPiper.