May 20, 2020

Zomato in US$18mn deal for fellow food startup

Tencent
food delivery
Zomato
Startup
2 min
Zomato in US$18mn deal for fellow food startup
Indian food ordering and restaurant discovery company Zomato has announced its acquisition of restaurant and caterer aggregator TongueStun
 
The cash and stock deal, as reported by The Times of India, is worth US$18mn.
 
Zomato, in competition with Swiggy for the largest share of India’s restaurant food delivery market, works in a similar manner to Deliveroo whereby customers can browse restaurant menus and order meals for delivery.
 
TongueStun specialises in aggregating caterers and restaurants for office canteens, an area which Zomato’s CEO sees as brimming with potential.
 
“We don’t see the ceiling to how big this market could become just yet,” Deepinder Goyal, Zomato’s CEO and co-founder, told TOI.
 
“What we know is that this market is very high frequency, and customers are very sticky as they end up placing more than 20 orders a month on the Tonguestun [sic] platform”.
 
Crunchbase has reported that this is Zomato’s 12th acquisition.
 
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According to TOI, Runnr, a logistics startup that Zomato hopes will give it an edge against Swiggy, was the subject of one such deal.
 
Both Swiggy and Zomato are investing heavily in initiatives to acquire ever larger customer bases and cement a dominance of the market.
 
Swiggy is outperforming Zomato at present, with Economic Times’ sources claiming that August saw Swiggy raise 19mn orders against Zomato’s 12mn.
 
Chinese conglomerate Tencent is one of a few backers preparing to invest an additional $500-700mn in Swiggy.
 

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Jun 8, 2021

Timeline: India takes unicorn leap with six in five days

India
Unicorns
Startups
tech
Kate Birch
2 min
We chart an historic week in India’s startup tech industry, where from April 5-9 the country achieved six unicorns

We chart an historic week in India’s tech industry, where in just five days, between 5-9 April 2021, the country achieved six new unicorns, bringing India’s total to 10 in 2021 to date, an immense unicorn leap from just seven in 2020 and six in 2019.

April 5: Meesho

India’s first social commerce unicorn, Meesho raised US$300m from SoftBank, Facebook and Shunwei Capital, giving the Bangalore-based startup a US$2.1bn valuation, a threefold jump from its previous funding round in 2019. Founded in 2015 by two IIT-Delhi graduates, Meesho connects producers and resellers, helping small businesses sell through social media. It has 45m customers and has enabled 13m entrepreneurs to start their online businesses with no investment.

April 6: CRED

Founded just over two years ago, Bangalore-based credit card repayment app CRED raised US$215m from Falcon Edge Capital and Coatue, nearly trebling its valuation to US$2.2bn from its January US$80m round. Allowing customers to pay off their credit card debt while earning CRED coins which they cash in for rewards, CRED has grown rapidly during COVID-19, doubling its customer base to nearly 6 million in a year.

April 7: API Holdings / Groww

The first epharmacy startup to gain unicorn status, PharmEasy (API Holdings), which has digitised 60,000 brick and mortar pharmacies and 400 doctors across India, raised US$350m in a round led by Prosus Ventures. Founded by four former Flipkart employees as a way of making investing simple, investment platform Groww became India’s second-youngest fintech unicorn, raising US$83m in Series D funding led by Tiger Global, quadrupling its previous round in September.

April 8: ShareChat

New Delhi-grown social media startup ShareChat, founded in 2016 by Mohalla Tech raised US$502m from Lightspeed Ventures, Tiger Global, Twitter and Snap taking its raised total over six rounds to US$766m and pushing its valuation to US$2.1bn. The funding will be used to grow its user base and short video platform Moj, which launched in 2020 following TikTok’s ban in India. The regional language startup claims 280m users.

April 9: Gupshup

AI-led conversational message startup joined the unicorn club after raising US$100m from Tiger Global giving it a ten-fold valuation of US$1.4bn. The smart messaging platform, which has seen accelerated growth during the pandemic, was founded in Bangalore in 2005 by serial entrepreneur Beerud Sheth, whose online freelancing platform Elance is now listed. Gupshup’s API enables 100,000+ businesses to build messaging and conversation experiences across 30+ communication channels. 

 

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