Swiggy buys restaurant tech platform Dineout
Food aggregator and delivery platform Swiggy said that it has signed a definitive agreement with Times Internet to acquire Dineout, a restaurant tech platform.
Swiggy did not disclose the size of the deal and said that Dineout will continue to operate as an independent app post the acquisition. Swiggy said it is looking to capitalize on Dineout's assets and leverage its position in the dining out space.
As a part of the transaction, founders Ankit Mehrotra, Nikhil Bakshi, Sahil Jain and Vivek Kapoor will join Swiggy once the acquisition is completed, Swiggy said.
The acquisition will help Swiggy to expand its offerings to dining out table reservations and events, Swiggy said. Swiggy also said that the acquisition will allow its restaurant partners to reach more customers. Dineout has a network of over 50,000 restaurants, which Swiggy would leverage.
"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," Majety added.
Swiggy's acquisition of Dineout comes at a time when the food tech platform is looking to expand its offerings beyond food and grocery deliveries amid soaring competition in the two segments. The acquisition will also help Swiggy compete with Zomato in the restaurant aggregator space.
Interestingly, Zomato, too, has invested in as many as seven companies since it got publicly listed last year and has been leveraging these acquisitions to expand its offerings beyond food delivery, restaurant hunting and dining reservations. For instance, Zomato made forays into quick commerce and grocery delivery through Blinkit (formerly Grofers).
Meanwhile, Swiggy has also started its work on its Initial Public Offering and is looking to list publicly early next year. The SoftBank-backed company had raised $700 million in January this year at a valuation of over $10.7 billion.