Food delivery giant Swiggy said it has entered into a definitive agreement with Times Internet to acquire Dineout, leading dining out and restaurant tech platform. Dineout will continue to operate as an independent app post the acquisition. The companies did not reveal the value of the transaction.
Designed to capitalise on Dineout’s unique assets and leading position in the dining out space, the acquisition will enable Swiggy to cater to every food occasion. Swiggy will double down on the synergies with Dineout’s offerings, including dining out table reservations and events. In time, restaurant partners will be able to reach more customers and grow their business. Swiggy has over 270,000 delivery partners across the country.
“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 Sriharsha Majety, CEO, Swiggy. “The acquisition will allow Swiggy to explore synergies and offer new experiences in a high-use category.”
Industry sources said that many of the restaurant partners on Dineout are also present on the Swiggy platform. Dineout brings with it an industry-leading network of over 50,000 restaurant partners along with invaluable experience and proven technology. Swiggy will benefit from this, along with Dineout’s team, who are passionate about the restaurant dining out category. Founders Ankit Mehrotra, Nikhil Bakshi, Sahil Jain and Vivek Kapoor will join Swiggy once the acquisition is completed.
“At Dineout, we always wanted to revolutionize the restaurant industry and this acquisition is an accelerating step towards the same goal,” said Ankit Mehrotra, co-founder and CEO. “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.
With a mission to offer unparalleled convenience, Swiggy today provides a range of services to better the lives of consumers. In the last 20 months, Swiggy has strengthened its food delivery business, expanded Instamart, its quick commerce grocery delivery to 28 cities, and Genie, its pick up and drop service to 68 cities.
Customers are able to enjoy the benefits across its on-demand services through Swiggy’s comprehensive membership program ‘Swiggy One’.
“We are proud of the positive impact that Dineout has created for consumers and restaurants, helping streamline and improve the eating out experience,” said Satyan Gajwani, vice chairman of Times Internet. “Swiggy plus Dineout is a powerful combination, and we are excited to join forces with Swiggy as we continue to look for ways to delight customers.”
As per research firm RedSeer Consulting’s estimates, more than 50 per cent of the $570 billion grocery retail space in India is addressable by e-grocery platforms. Investors are pouring millions of dollars into startups and companies tapping this space.
Early this year, Swiggy raised $700 million in Invesco-led new funding, which, according to sources, has made the firm a decacorn, almost doubling its valuation to $10.7 billion. The fundraise is giving Swiggy enough firepower to take on rivals such as Zomato, Amazon, Flipkart, Dunzo, Licious, and Ola Foods and do acquisitions and strategic investments.
For instance, last month Swiggy led a $180 million funding round in bike taxi platform Rapido, whose valuation after the fundraise was $830 million. Swiggy’s participation in this round is building on the synergies between the two companies. With the aim to deliver a superior customer experience through higher fleet availability, it will also provide additional earnings for both Swiggy’s delivery executives and Rapido’s captains.
Swiggy has made 4 acquisitions and 3 investments, according to data analytics firm Tracxn. It has invested in multiple sectors such as food tech, online grocery and video creation tools. Some of the acquisitions include Kint (February 2019), Scootsy (August 2018), and Supr Daily (June 2018).
In March, Swiggy’s chief rival Zomato extended a $150 million loan to quick commerce firm Blinkit (formerly Grofers) and the two reached an all-stock deal for a merger. Zomato has made 9 acquisitions and 13 investments, according to Tracxn. The company has spent over $ 108 million on the acquisitions. It has invested in multiple sectors such as food tech, local services and facility management tech. Some of the acquisitions include Gatoes (March 2022), TongueStun (acquired for $18 million in September 2018), Runnr ( acquired for $40 million in September 2017) and Urbanspoon (acquired for $50 million in January 2015).
According to the company statement last August, Zomato had 310,000 active delivery partners in July of 2021, the highest-ever number in the platform’s lifetime.