(Acquisition Alert) Swiggy Acquires Dineout: Details That You Must Know

By Dhanpreet Singh    -   May 25, 2022

Earlier this month, Swiggy (Indian food delivery Unicorn) entered into definitive agreement for all stock deal with Times Internet to acquire its online restaurant table booking service platform Dineout. Though, value and effective Date of the deal is undisclosed, according to various sources it is estimated between $120 Million - $200 Million.

This is Swiggy's second major investment this year after it invested $180 Million in a bike taxi app, Rapido.

About Dineout: Dineout is an intermediary application for restaurant and dining out offering plethora of exclusive deals, discounts, complementary dishes, etc. This facilitates cashless transactions with exploring and booking restaurant tables. Primary source of its revenue includes annual subscription from customers and restaurant partners. It also earns from every transaction routed through its app.

Highlights of the Deal:

• Dineout, which includes 50,000 restaurants across 20 cities will be accessible to Swiggy through deal giving straight delivery revenue conversion.
• Dineout will continue to function as a separate application post-acquisition. However, over the next one year, Dineout will be integrated on Swiggy app itself.
• Founders of Dineout, Ankit Mehrotra, Nikhil Bakshi, Sahil Jain, and Vivek Kapoor are expected to join Swiggy post this acquisition.
• Being peer to peer competitor of Zomato, Swiggy will utilise synergies and create new experiences in a high-use category with the acquisition offering a new ray of services.
• On the other hand, Dineout’s restaurant partners may get access to Swiggy’s large customer base offering easy customer access:
• The impact of Covid-19 has begun to low down, leading to more and more customers dining out instead of ordering food, so Swiggy looks to capitalise this opportunity
• Prime reason for acquisition is to acquire as much market as possible and cater to almost every food need of the customers.

In our view, Dineout is already enjoying as compared to its rivals, and has a considerable amount of positive feedback from customers and it is profit making. Hence, with this move, Swiggy is all set to give a hard time to its competitors like Zomato, Uber Eats, Foodpanda, Grofers, etc.

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