Swiggy Set to Acquire Dineout
Deal value expected to be around $150-$200M
Let’s take a closer look at this move.
No doubt it’s a duopoly market between Swiggy and Zomato.
Zomato started off with a core proposition of restaurant discovery and discounts on table booking.
It then ventured into Food Delivery to challenge Swiggy who was comfortable with no real competition till then.
Zomato -1 | Swiggy – 0
Swiggy is now trying to level up with Zomato with Dineout by introducing the missing piece of Restaurant discovery.
Here is where it gets interesting,
Zomato’s Dining out revenue dropped by ~35% to ~$7.6M in FY21
But Dineout is likely to cross a topline of $13M in FY22, 50% of which is in Q3 alone.
So, Swiggy has blitzed the learning curve leaving Zomato in a vulnerable position.
Zomato – 1 | Swiggy – 1.5
There is more,
This acquisition will allow Swiggy to venture into offline events as well,
Next thing you can expect is
+ Food festivals
+ Night markets
+ Stand-up comedy events
+ Movie nights, and more.
Score: let’s not rub it in their faces.
But what is important is that Swiggy is no longer playing catch-up.
Will be interesting to see Zomato’s next move.
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