Swiggy Dineout deal: Swiggy buys Dineout from Times Internet in $120 million all-stock deal

Bengaluru: Online food delivery app Swiggy has entered into a definitive agreement with Times Internet to acquire restaurant technology and the Dineout restaurant platform.

Dineout will continue to operate as an independent app after the acquisition, Swiggy said in a statement Friday.

The largely all-share deal is worth around $120 million, or about Rs 930 crore, and is expected to close within the next month, several people familiar with the talks have told ET.

“The acquisition will allow Swiggy to explore synergies and deliver new experiences in a high-use category,” said Sriharsha Majety, co-founder and CEO of Swiggy.

Swiggy is expected to double Dineout’s offerings, including table reservations and events, while Dineout partner restaurants will gain access to Swiggy’s large customer base, allowing them to increase their reach.

Ankit Mehrotra, co-founder and CEO of Dineout, said Swiggy currently lacks a restaurant vertical, “which we will now integrate and build.”

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Swiggy’s rival had started as a table reservation platform and continues to operate that business.

Founded in 2012 by Mehrotra, Nikhil Bakshi, Sahil Jain and Vivek Kapoor, Dineout enables customers to discover restaurants in their area and make table reservations through its network of 50,000 restaurants in 20 cities.

It also provides catering solutions with regards to contactless dining in addition to discounts and privileges to customers at select restaurants through Dineout Passport and Dineout Pay.

In 2014, Dineout was acquired by Times Internet, the digital media arm of Bennett, Coleman and Company Ltd (Times Group) which publishes ET.

At present, Dineout has nearly 5 million users while Swiggy has over 50 million active users in annual transactions, the sources cited above said.

The companies will focus on bringing Dineout’s offerings to the Swiggy app over the next 12 months. Going forward, Swiggy will also integrate its loyalty program with Dineout Passport to create a solid subscription for customers. It will also integrate its wallet with Dineout Pay, they told ET.

Swiggy will be able to use Dineout’s restaurant software solutions, which are split into marketing and payments. He will also benefit from Dineout’s event business as he seeks to increase his revenue streams.

“Dineout is a highly valued brand that enjoys consumer and restaurant loyalty,” Majety said. “Times Internet and the founding team must be credited for the transformational impact they have brought to the dining experience through their products, technology and vast selection of restaurant partners.”

Dineout’s Mehrotra said Swiggy’s large user base will help fuel its next phase of growth. “We’ve had a strong rebound from Covid, and our numbers are starting to rise above pre-Covid levels, leading us to explore much bigger opportunities,” he told ET in an interaction.

Currently, Swiggy has a network of 190,000 partner restaurants and stores in over 520 cities. Over the past two years, it has expanded Instamart, its commercial grocery delivery fast, to 28 cities.

On May 10, ET reported that Swiggy had temporarily shut down its Genie pickup and drop-off service in major metros as the company struggled to hire delivery staff and keep up with demand.

In April, Swiggy led a $180 million investment in bicycle and car taxi aggregator Rapido. The food delivery platform also invested in restaurant management company UrbanPiper in April.

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