Online restaurant guide and ordering service Zomato, which recently raised $50 million from Info Edge & others, has acquired US-based restaurant reservations and table-management platform NexTable in a cash and stock deal, reports TechCrunch. The financial details of the deal remain undisclosed at present. Following the deal, NexTable founder & CEO T.C. DeSilva will be joining Zomato. The report mentions that NexTable will soon be renamed Zomato Book.
Zomato co-founder & COO Pankaj Chaddah told TC that they will launching the renamed NexTable in India, UAE and Australia later this year.
This is Zomato’s second acquisition in US: The Gurgaon-headquartered company had acquired IAC’s Urbanspoon in an all-cash transaction for $52 million to enter the US market, in January this year. The company had earlier forayed into North America by launching in Canada in October last year.
The NexTable acquisition adds a new facet to Zomato’s offerings: it will now be able to offer table reservation, in addition to the online ordering service, which it introduced in Delhi this week. It’s worth noting that the company had also acquired restaurant point-of-sale (POS) product MaplePOS and renamed it to Zomato Base, earlier this month.
Earlier this year, Zomato CEO Deepinder Goyal had told MediaNama that they were still contemplating whether to get into the table reservations business or not. He had mentioned that the biggest constraint was “bandwidth in our team, in our product team, in our ops team, to actually execute all these things at the same time. If we are able to build out a team which is able to do this quickly, we will do it.”
The company has increasingly being focusing on monetization: it introduced advertisements on its mobile apps, which currently drives majority traffic for the company. This was a critical move for Zomato considering that 70% of its traffic comes from mobile phones (as of January 2015) – 45% via the apps and 25% mobile web. Zomato had also launched a mobile app for business owners called Zomato for Business, which allows businesses to manage promotions & deals, upload special menus & events, reply to consumer reviews and create richer business listing with images & detailed information.
Over the past year or so, Zomato has also been actively acquiring companies to enter new markets worldwide. These include:
– Italian restaurant discovery service Cibando in December.
– 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.