Swiggy will snap up Dineout for $200 million in an attempt to compete with Zomato in the dine-in market
- ByStartupStory | February 15, 2022
According to reputable sources, top online food delivery company Swiggy is going to purchase Times Internet-backed eating out website Dineout for close to $200 million (about Rs 1,511 crore). Dineout was in negotiations with Cred, a renowned financial company, but Swiggy appears to have won the contest. Swiggy and DineOut are in the closing stages of negotiations for a $200 million transaction, according to sources (at the current valuation of Dineout).
Swiggy and Dineout asked not to be named for comment right away. Swiggy’s main competitor, Zomato, has always been in the restaurant market. Ankit Mehrotra, Nikhil Bakshi, Sahil Jain, and Vivek Kapoor started Dineout in 2012. The dining out platform was purchased by Times Internet in 2014 for an estimated Rs 60 crore. The pandemic’s last two years had a significant impact on the country’s dining out sector, and dineout business was also impacted.
As per the National Restaurant Association of India (NRAI), the Indian food services sector saw a significant contraction in FY21, resulting in the permanent closure of over 25% of food business operators and the loss of approximately 24 lakh jobs. “In FY21, India’s food services business shrank by 53%, to Rs 2,00,762 crore, down from Rs 4,23,624 crore in FY2020,” stated Kabir Suri, President of the National Retail Association of India.
Swiggy raised $700 million last month, headed by Invesco, to expand its whole operations, according to the firm. Swiggy made it to the list of Indian decacorns (companies valued at $10 billion or more) with a $10.7 billion valuation. Also, Swiggy raised $1.25 billion in funding last year.
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