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.
 
See More:
 
 
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.
 
Share

Featured Articles

Create C-suite space for the Chief Transformation Officer

Responsible for driving growth and change, the Chief Transformation Officer is the latest addition to the C-suite as business undergoes major change

12 AI predictions for the enterprise in 2023 – Dataiku

With 2023 likely to be a huge year for AI, experts from AI platform provider Dataiku deliver their enterprise AI and ML trends for the year ahead

Welcome to the new breed of private members' clubs

The pandemic has given birth to a new breed of private members’ clubs where work and play merge, membership and spaces are curated, and community matters

Welcome to the New Age of the CISO

Leadership & Strategy

Making the UAE the world’s strongest digital fortress

Technology

World Mental Health Day – 10 apps to improve wellbeing

Leadership & Strategy