Zomato, the online restaurant guide has acquired Seattle-based food portal Urbanspoon. The deal is estimated at $60 million (Rs 370 crore) all-cash transaction. This is the sixth and biggest acquisition by Zomato.
Deepinder Goyal, the chief executive of Zomato finalised the acquisition with digital media company InterActive Corp which owns Urbanspoon. Owned by media billionaire Barry Diller, UrbanSpoon is just one of the 150 internet brands under IAC.
Post this acquisition of Urbanspoon, Zomato marks its presence in 22 countries and will enter the US market to face competition from Yelp, which operates in about 28 countries and lists business ranging from restaurants to beauty salons and spas.
Zomato’s methodology to getting data about restaurants is grassroots: the organization procures local people to curate restaurant data, take pictures, filter menus, and make recommendations. Zomato additionally incorporates real-time information about the restaurant and lets clients book tables through its iOS and Android applications.
“Zomato’s traffic will more than double to more than 80 million visitors, probably making us the largest restaurant (only) search company in the world,” said Pankaj Chaddah, cofounder of Zomato.
“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,” said Keela Robison, chief executive officer of Urbanspoon.