Swiggy has entered into an agreement with Times Internet to acquire Dineout— a platform for restaurant discovery and online table booking, according to a press release. The companies did not share the financial terms of the acquisition, but TechCrunch reported that the all-equity deal is valued at $200 million.
Why it matters: Swiggy’s acquisition is significant as it provides the company a foothold in the dining out space which will pit it against Zomato. Swiggy has largely kept its focus on delivery but this acquisition might see it making a play for a space that Zomato has come to dominate for years.
Why acquire Dineout: The company will offer Swiggy a network of over 50,000 restaurant partners along with technical expertise. Swiggy also wrote that Dineout will help with setting up table reservations and events while drawing synergies from its offerings. It also provides restaurant solutions such as marketing, payments, and contactless dining besides discounts and privileges to customers across partner restaurants through Dineout Passport and Dineout Pay, Economic Times reported. Dineout has close to 5 million users, ET added.
What will happen to Dineout’s team: Swiggy wrote that Dineout will continue to operate as an independent app post the acquisition and its team will be absorbed into Swiggy. The release added that founders Ankit Mehrotra, Nikhil Bakshi, Sahil Jain, and Vivek Kapoor will join Swiggy. Swiggy intends to combine its loyalty programme with Dineout Passport to create a single subscription for customers, ET said in its report. It will also integrate its wallet with Dineout Pay, the report added.
How old is Dineout: The company was founded in 2012 and was acquired by Times Internet two years later, which has since invested $50 million, TechCrunch added. The companies will focus on integrating Dineout’s offerings with the Swiggy app over the next 12 months, ET reported.
Swiggy switches out Swiggy SUPER: Swiggy One was launched in November 2021 wherein users are able to avail free deliveries on orders from over 70,000 restaurants if they enroll in the company’s single-tier subscription plan. It was seen as a ploy to take on Zomato Pro— Zomato’s own membership service.
- The membership programme replaced the platform’s incumbent Swiggy SUPER programme.
- The food delivery major had revamped Swiggy SUPER in March 2021 offering three tiers—Binge, Bite and Bit—with increasing benefits.
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