Google, Just Dial in deal talks

Acquisition to increase the technology giant's database by 20 million listings

US internet giant Google, a subsidiary of parent Alphabet, is in talks with Mumbai-based service engine Just Dial to acquire its business.

“Google has been talking to Just Dial for an acquisition for some time. Both the companies entered into exclusive talks about two months ago,” said an investment banker familiar with the discussions. “It may take some more time before the discussions are finalised,” he added.

Google has expanded its offers in India to include business listings with Google Maps, too. The introduction of Google Aero, an aggregator services app, in collaboration with already established players such as UrbanClap and Faasos in the services and food-ordering business, respectively, has put it into competition with Just Dial.

While Google has been adding local listings to its database organically, acquiring Just Dial will provide it with a database of 20 million pan-Indian listings.

In response to an email sent to Just Dial, Chief Financial Officer (CFO) Abhishek Bansal said, “Just Dial, as part of its regular business, does meet various relevant corporates for exploring any business/strategic tie–ups. In case there are any developments to disclose, we shall do it at an appropriate time.”

Google did not respond to an email sent to it.

Just Dial has been expanding its offers to beat competition. About 70 per cent of its traffic comes via Google, and the latter has emerged as the biggest competitor to the Mumbai-based firm with its services through Google Maps and Aero.

To beat competition from Google and AskMe, Just Dial has been innovating with services such as ‘Search Plus’, which makes several day-to-day tasks conveniently actionable and accessible to users through a single app. It has also been slowly transitioning from being a provider of local search and related information to being an enabler of such transactions. It recently launched JD Omni, an end-to-end business management solution for small and medium enterprises (SMEs), through which it intends to transition thousands of SMEs to efficiently run their businesses online and have their adequate online presence via their own website and mobile site. Apart from this, Just Dial has launched JD Pay, a solution for quick digital payments.

“Increasing competition in listing services from Google can make the business for Just Dial tough. But an acquisition by Google can grow Just Dial’s business much faster as it will get prominence in search,” said another investment banker familiar with the talks.

In June, Bansal had said, “You might call Just Dial and Google competitors but I also look at both of them as collaborators.” He had said that when a user searched for any particular category in an area, he would see paid ads coming on top and Just Dial results too, which would enhance the user’s experience on Google. “So, that way, we consider it to be a symbiotic relationship so far, and we hope that continues going forward,” he had added. 

The Just Dial stock closed 2.6 per cent lower at Rs 459 on Wednesday on the BSE. The stock has gained 35 per cent in the past three months. 

On Wednesday it had a market capitalisation of Rs 3,193 crore.