Zomato’s acquisition spree continues: The company has acquired Turkey’s restaurant search service Mekanist for an undisclosed amount in an all-cash deal. Similar to its previous acquisitions, Zomato says that both the teams will work closely to integrate Mekanist to Zomato in the coming months and all of Mekanist’s traffic and restaurant-related content will move to Zomato.
Post integration, Zomato claims to cover more than 75,000 restaurants across Turkey, from the existing 27,500 restaurants in Istanbul and Ankara. Zomato had entered Turkey in November last year, around the same time when it raised $37 million from Sequoia Capital and Info Edge.
This is Zomato’s seventh acquisition in the last six months and comes on the heels of acquiring UrbanSpoon for $52 million to enter Australia & United States markets as well as strengthen its operations in existing markets like UK, Canada, New Zealand, and Ireland. Other acquisitions include:
– Italian restaurant discovery service Cibando last month.
– Polish restaurant search service Gastronauci in September.
– Czech Republic’s restaurant guide Lunchtime.cz and Slovakia’s restaurant guide Obedovat.sk for a combined amount of $3.25 million in August.
– New Zealand-based restaurant search service MenuMania in July.
Zomato claims to currently offer restaurant information from over a million restaurants across 500 cities in 22 countries.
Raising more money
Zomato is also raising more money to fund its international expansion, having spent most of its last funding round on the UrbanSpoon acquisition. Earlier this month, Zomato co-founder and CEO Deepinder Goyal said in an interview to Reuters that they are currently in talks with both new & existing investors to raise around $100 million in the next 30 days. The company has raised a total $113 million from investors like Info Edge, Sequoia Capital and Vy Capital until now.
Zomato has also started focusing on monetization by introducing advertisements on its mobile apps, which currently drives majority traffic for the company. Goyal had recently told Medianama that more than 50% of its 35 million visits come from its mobile application across the globe and they have “seen remarkable traction in the two months they have been serving these app ads”.
It had also launched a mobile app for business owners called Zomato for Business that allows businesses to manage promotions & deals, upload special menus & events, reply to consumer reviews and create richer business listing with images & detailed information.