Food-delivery app available online Swiggy has agreed to buy restaurant technology and dining out platform Dineout from Times Internet in a formal deal. Swiggy said in a statement that Dineout will continue to operate as an independent app following the acquisition.
The mostly all-stock transaction is likely to close in the next month for roughly $120 million, or about Rs 930 crore. The acquisition would allow Swiggy to investigate synergies and create new experiences in a high-use area, according to Sriharsha Majety, Swiggy’s cofounder and CEO. Swiggy is expected to expand Dineout’s products, such as table bookings and events, while Dineout’s restaurant partners will have access to Swiggy’s enormous consumer base, expanding their reach.
Dineout, founded in 2012 by Mehrotra, Nikhil Bakshi, Sahil Jain, and Vivek Kapoor, allows clients to find restaurants in their neighbourhood and make reservations at any of its 50,000 restaurants in 20 cities. It also offers contactless eating solutions to restaurants, as well as discounts and privileges to customers at certain restaurants via Dineout Passport and Dineout Pay. Times Internet, the digital media branch of Bennett, Coleman and Company Ltd (Times Group), which publishes ET, bought Dineout in 2014. According to the statistics stated above, Dineout has close to 5 million consumers, whereas Swiggy has over 50 million active annual transacting users.
Important Takeaways For All Competitive Exams:
- Swiggy’s cofounder and CEO: Sriharsha Majety
Cofounder and CEO of Dineout: Ankit Mehrotra