Swiggy is in talks to acquire table reservation app Dineout
Food aggregator Swiggy is in preliminary talks with Internet Times-backed Dineout, three people with knowledge of the talks said. The food delivery app is considering a full or partial takeover of the restaurant management and table reservations company, the sources said.
“Discussions with Swiggy started about two months ago. Late last year, Dineout was also in talks with Cred,” one of the people quoted above said without giving a timeframe. Talks are in the preliminary stages and due diligence is underway, said added a second person.
The two did not comment on the size of the potential deal. Previously, media reports of talks between Dineout and Cred pegged Dineout’s valuation at $25-50 million.
“There’s nothing like it right now. It’s talk after talk. We’re partnering with Swiggy and Cred on a few initiatives and maybe that’s why it came up,” said the co-founder of Dineout, Ankit Mehrotra.
Swiggy declined to comment.
Dineout was founded by Mehrotra, Nikhil Bakshi, Sahil Jain and Vivek Kapoor in 2012, and was acquired by Times Internet in 2014 through its TimesCity platform for an estimated value of ₹60 crores.
SoftBank-backed Swiggy closed a $700 million funding round led by asset management firm Invesco in January, nearly doubling its valuation from its previous fundraising round of $10.7 billion.
The company’s food delivery business has nearly doubled in gross order value over the past year, she said at the time, adding the new capital will help her accelerate growth. on its main platform in addition to making new investments to develop its Instamart hyperlocal delivery.
If the deal with Dineout goes through, Swiggy could follow the path taken by Zomato, to offer more of a 360-degree ecosystem for restaurants, said Samir Kuckreja, founder and chief executive of Tasanaya Hospitality, a boutique consultancy, which also works as a transaction consultancy for restaurants.
Dineout has a point-of-sale (PoS) system widely used by restaurants, a loyalty program and a table reservation system, Kuckreja pointed out. The acquisition could lead Swiggy to acquire these technologies, teams and customers who already use these platforms.
“If Swiggy were to go this route, it would try to be a food and beverage solutions provider across the industry in different areas and not just a delivery aggregator. Zomato has been doing this for many years and has even ended up shut down some verticals that weren’t working,” Kuckreja said.
Dineout has acquired Gourmet Passport, a membership app that grants access to free food, drink and buffets. It also acquired Torqus, a cloud-based point-of-sale company.
The company acquired inResto Services, a restaurant management system, for an undisclosed amount in 2018. The system helps digitize restaurant ordering and loyalty programs. Dineout competes with EazyDiner, which was founded in 2014 for the National Capital Region.
Times Internet is a digital products company and the digital business of the Times Group. The company has online real estate portal magicBricks, music streaming service Gaana and personal finance platform ETMoney.
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