Popular restaurant search App, Zomato has acquired US based Urbanspoon. With this acquisition, Zomato will have presence in 22 countries including US, canda, Italy and Australia and will have 1 million restaurants listed.
Urbanspoon has presence in US, canda and Australia. In Zomato’s blog Deepinder Goyal said “As we stand here now, we felt joining forces with Urbanspoon would be the best way to turbocharge our growth and make our way into the US, Canada and Australia. Without question, this will also help us take significant strides forward in the markets we’ve been sharing with Urbanspoon so far – the UK, Canada, New Zealand, and Ireland.”
Over the couple of months, Urbanspoon’s website and app will be integrated into Zomato. Here is how Zomato will look like post acquisition;
As per the filings of Info edge India limited with BSE, Zomato has acquired Urbanspoon in an all cash transaction amounting to US$ 52 million.
With this acquisition, Now Zomato will have presence in more than 500 cities and will have more than 80 million visitors per month.
On mobile phone application download front, zomato will cross 31 million mark from its present figure of 5 million.
Urbanspoon on its blog said “Over the coming months, the Zomato and Urbanspoon teams will be working closely to integrate Urbanspoon’s listings, ratings, user accounts and more into the Zomato system. We think this transition will be hugely beneficial to our current users as they will get to enjoy the beautiful design and usability of the Zomato website and mobile apps combined with the features they know, love, and expect from Urbanspoon.”
The biggest challenge will be to compete with world players like Yelp. To have presence in Italy, in November 2014 Zomato has already acquired italian restaurant search site Cibando.
Info edge (India) limited, through its wholly owned subsidiary has invested an amount of about Rs. 1.85 billion in Zomato. Upon completion of the allotment/transfer of shares against the said investment, aggregate amount of investment in Zomato will be about Rs. 3.27 billion. Info Edge will hold 55.13% of the equity share capital in Zomato. The overall holding on a fully converted and diluted basis will remain at 50.1%.
image source: Urbanspoon