What is the deal?
Swiggy will acquire Dineout — founded by Ankit Mehrotra, Nikhil Bakshi, Sahil Jain and Vivek Kapoor — from Times Internet for an undisclosed amount. Following the completion of the deal, the three founders will join Swiggy, and Dineout will continue to operate as an independent app.
Why is Swiggy getting into this space?
In a statement, Swiggy said that the acquisition is designed to capitalise on Dineout’s assets and position in the dining out space. The app brings with it a network of 50,000 restaurant partners. Sriharsha Majety, CEO, Swiggy said: “The acquisition will allow Swiggy to explore synergies and offer new experiences in a high-use category.”
What is the big picture impact of this deal?
The acquisition means Swiggy stepping into Zomato’s core terrain of restaurant listings — a move that intensifies the competition between the two food-tech platforms. Zomato’s popular Zomato Pro product is at the heart of the Gurugram-based company’s dining out business segment. This segment was hit severely during the pandemic but is seeing some green shoots as Covid19 recedes. In its results presentation for October-December, Zomato had said: “The revival of in-restaurant dining in Q3 FY22 led to some green shoots in our dining-out ad-sales business. Our focus here for now is on improving our product and customer engagement while putting monetization on the backburner for a while”.