Indian food and grocery delivery company Swiggy announced on Friday that it has signed a definitive agreement with Times Internet to acquire restaurant table reservation platform Dineout.
The acquisition comes amid intensifying competition between Swiggy and rival Zomato, who are vying for a bigger chunk of Indian consumers’ pockets through their food and grocery delivery offerings. In a rare case, the two companies jointly invested in SaaS company UrbanPiper, which provides a one-stop-shop platform for restaurants to help manage their operations.
Now, with the acquisition of Dineout, Swiggy said it will “double the synergies with Dineout’s offerings, including table reservations and events.” Dineout has a network of more than 50,000 partner restaurants in 20 cities, from which Swiggy stands to benefit. The startup makes money by selling annual subscriptions to restaurants and customers and through its pay-by-invoice solution.
Previously, media had suggested that Dineout was also in talks with credit card payment company Cred for an acquisition that pegged the dine-in app’s valuation at $25-50 million. Dineout co-founder Ankit Mehrotra had denied the claims.
Dineout was founded by Mehrotra, Nikhil Bakshi, Sahil Jain and Vivek Kapoor in 2012, and was acquired by Times Internet in 2014 through its TimesCity platform for around Rs 60 crore.
Swiggy did not disclose the size of the deal and said Dineout would continue to operate as an independent app even after the acquisition. However, TechCrunch reported, citing a source, that it could be an all-stock deal valuing Dineout at $200 million.