Food and grocery delivery giant Swiggy has entered into a definitive agreement with Times Internet to acquire Dineout, in an all-equity deal that values the dining out platform at around $200 million.
Dineout, which was founded in 2012 and bought by Times Internet in 2014, will continue to operate as an independent app, Swiggy confirmed.
The startup offers dining out table reservations and has a network of over 50,000 restaurant partners in India. Its four founders, Ankit Mehrotra, Nikhil Bakshi, Sahil Jain, and Vivek Kapoor, will join Swiggy following the acquisition.
"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.
With this acquisition, Swiggy will be able to compete with Zomato in the dining-out business. While the latter has lost billions in value after going public, it has typically had the upper hand when it came to dining out.
"Building on synergies with Swiggy’s current offerings, (the acquisition) marks Swiggy’s foray into the high-use dining out category," the company wrote in its statement.
Swiggy recently led a $180 million financing round into bike taxi startup Rapido. It also backed restaurant management platform Urban Piper, along with rival Zomato.
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