Zomato, Indian restaurant search services provider has acquired Seattle based Urbanspoon for all cash deal of $50 million. With this acquisition Zomato enters into highly competitive market of the US, Australian and Canadian markets. In fact, this is one of the largest acquisitions by an Indian company in recent history.
Earlier Urbanspoon was competing with other restaurant search service provider like Yelp Inc. Urbanspoon was owned by media mogul Barry Diller and InterActive Corp. Deepinder Goyal’s Zomato now present in 22 countries. With these acquisitions Zomato’s restaurant coverage increases from 300, 000 to 1 million restaurants.
Compared to Zomato focuses only on food and restaurants, Yelp has several categories under its search options namely health, medical, beauty and spas services. This may prove a winning formula for Zomato by positioning as a pioneer in online restaurant business.
However Zomato is in talks with their existing investors to further fund the startup for $ 100 million. In November 2014, Zomato was funded by Sequoia Capital, Info Edge and Vy Capital to the tune of $60 million. The company valued at $660 million, Zomato now eyes for a $1 Billion mark.
Zomato App will provide an one stop coverage where the user can find the menu along with price of each food item along with the pictures of the food. The strong team from many cities provide many inputs. Users contribute towards the inputs making it unique product app.
Urbanspoon and Zomato combines similar experience which made it perfect for acquisition for Zomato. In fact Urbanspoon was founded in 2006 by IAC. Zomato will acquire IAC’s stake in Urbanspoon. Traffic on Zomato site has been trebled after acquisition of Urbanspoon. Zomato plans to integrate Urbanspoon operations into its fold in next few months.
Info Edge owns Naukri.com has funded several startups meritnation.com, Canvera Digital Technologies, Policy Bazaar.com and Zomato.com and Sequoia Capital has invested is in fore front of many investments in many startups.