“The biggest challenge and most fun part of this move, however, is the fight we’re going to be picking with Yelp. In the market they have dominated for so long. After all, like Mark Twain famously said, it isn’t the size of the dog in the fight, it’s the size of the fight in the dog.” [Deepinder Goyal, Cofounder @Zomato]
Zomato has entered the US market with acquisition of UrbanSpoon (all-cash deal), restaurant site owned by IAC.
Urbanspoon has been a dominant player in the US, Canada and Australia for years and the deal is in the range of $50-$60mn and is surely one of the biggest M&A deal done by an Indian startup (in US).
This is Zomato’s second acquisition just within a month (Italy’s Cibando was announced in December’14) and is 7th acquisition so far. Zomato acquired MenuMania in New Zealand, Lunchtime in Czech Republic, Obedovat in Slovakia, and Gastronauci in Poland recently.
The teams will be working closely over the coming months to integrate Urbanspoon into Zomato. In due course of time, all Urbanspoon traffic will move to Zomato.com, and all Urbanspoon app users will be able to use the Zomato app. This acquisition also has a lot to offer to restaurant businesses. Zomato’s hyperlocal advertising model, combined with the Zomato for Business app suite, will allow restaurant businesses to reach out to, connect with, and engage customers like never before.
In total, Zomato has raised $113mn (last round of $60mn was led by Sequoia capital) and is now 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.
Surely a big day for Zomato – they are closer to Yelp territory and now starts the real fun!