Swiggy Acquires Restaurant Tech Platform Dineout

BANKING AND ECONOMY

Online food-delivery app Swiggy signed an agreement with Times Internet to acquire ‘Dineout’ - a restaurant tech and dining platform - for $120 million (about Rs 930 crore). Times Internet acquired Dineout in 2014. Times Internet, the digital media arm of Bennett, Coleman and Company Ltd (Times Group) publishes Economic Times.

The deal is expected to close over the course of the next month. Even after the acquisition, the platform will continue to operate as an independent application.

The acquisition will allow Swiggy to explore synergies and offer new experiences in a high-use category. It will focus on integrating Dineout’s offerings onto the Swiggy app over the next 12 months.

The number of active annual transacting users of Dineout and swiggy is about 5 million and 50 million. Swiggy is expected to double down on Dineout’s offerings, including table reservations and events while Dineout’s restaurant partners will get access to Swiggy’s large customer base, allowing them to increase their reach. Currently, Swiggy has a network of 190,000 restaurant partners and stores in over 520 cities. Swiggy’s rival Zomato had started off as a table reservation platform and continues to operate that business.

It also provides restaurant solutions with regards to contactless dining besides discounts and privileges to customers across select restaurants through Dineout Passport and Dineout Pay.

 

   Important points for the exam:

  • An Indian online food ordering and delivery platform Swiggy acquired ‘Dineout’ - a restaurant tech and dining platform - for $120 million (about Rs 930 crore). 
  • A deal was signed with Times Internet for the acquisition. Times Internet acquired Dineout in 2014. 
  • Even after the acquisition, the platform will continue to operate as an independent application.
  • The acquisition will allow Swiggy to explore synergies and offer new experiences in a high-use category. It will focus on integrating Dineout’s offerings onto the Swiggy app over the next 12 months.
  • Swiggy is expected to double down on Dineout’s offerings, including table reservations and events while Dineout’s restaurant partners will get access to Swiggy’s large customer base, allowing them to increase their reach.

   Facts to know:

  • Dineout was founded in 2012.
  • Co-founder and CEO of Dineout: Mr. Ankit Mehrotra.
  • Swiggy was founded in July 2014.
  • Headquarters of Swiggy: Bengaluru, Karnataka.
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