India-based restaurant search and discovery company Zomato acquires Urbanspoon, enters the US, Canada and Australia markets.
Zomato, the restaurant search app, announced today that it has acquired Urbanspoon for an undisclosed amount in an all-cash deal. The acquisition marks Zomato’s entry into the United States.
However, TechCrunch reports that the deal was worth between $50 million to $60 million.
This also establishes Zomato’s presence in Australia and Canada. After the acquisition, Zomato will be present in 22 countries across the world. Its restaurant coverage will increase from about 300k restaurants to more than 1 million restaurants across the globe. Zomato’s traffic will more than double from about 35 million visits per months to more than 80 million visits per month, probably making it the largest restaurant search company in the world.
Deepinder Goyal, Founder and CEO of Zomato, said, “Our US entry has been in the cards for a while now, and we’re delighted to be doing so by welcoming Urbanspoon into Zomato. They have a strong presence in the US and the UK, and they also dominate restaurant search in Australia and Canada. Urbanspoon has a huge following, and is home to legions of people who are as passionate about food as we are. We will soon be integrating the two products to bring the best of both products to our users in the United States as well as the rest of the world.”
The company said that they will begin working on integrating Urbanspoon into Zomato and all Urbanspoon traffic will be moved to Zomato.com, and all Urbanspoon app users will be able to use the Zomato app.
The Zomato for Business app suite allows restaurant businesses to reach out to, connect with, and engage with customers, including providing real-time feedback.
“Zomato has experienced phenomenal growth in recent years, and our customer bases complement each other’s perfectly,” said Keela Robison, Urbanspoon CEO. “Zomato’s significant investments in people and technology will bring Urbanspoon customers, restaurant owners, and food bloggers a number of new capabilities and features. We’re excited to combine our strengths to accelerate growth.”
This is Zomato’s sixth acquisition in the last six months, and the biggest one. Zomato has recently acquired local dominant restaurant search players in New Zealand, Poland, Czech Republic, Slovakia and Italy.
Started in 2008, Zomato has so far raised around $114 million in capital from VCs and private equities including Sequoia Capital, Info Edge India Ltd.and Vy Capital.