International restaurant search provider Zomato has acquired Urbanspoon from IAC for between $50 and $60 million in cash. Zomato was founded in India in 2008 but now operates in more than 20 countries and 130 cities globally.
Urbanspoon content will be incorporated into Zomato and the Urbanspoon brand will go away after a short transition period. Zomato hopes to launch its new, integrated app in North America in March.
Zomato recently received $60 million in funding from Sequoia Capital, most of which it spent on this acquisition to enter the North American market. Zomato has raised more than $100 million so far. The purchase price range was confirmed by the company. Geekwire was the first to report the news last night ahead of the embargo.
The company said it’s “already a dominant player in markets across the globe, including India, the UK, Europe, South East Asia, and South America.” The Urbanspoon acquisition caps a six month buying spree in which Zomato acquired restaurant verticals in New Zealand, Poland, Czech Republic, Slovakia, Italy and Turkey.
Zomato pointed out that Urbanspoon “will more than double Zomato’s web traffic from 35 million visits per month to over 80 million.” And it will boost its restaurant listings from roughly 300,000 to more than 1,000,000 globally. Zomato will be directly competing with Yelp, Foursquare, TripAdvisor, Google, YP and various others in the restaurant category. Restaurants is the number one local search category in the US.
Zomato uses OpenTable for restaurant bookings in the UK and will do so in North America. The company also plans to roll out mobile payments this year.
The following is a short email interview of Zomato CEO Deepinder Goyal conducted this morning:
Will you comment on the acquisition price; it seems expensive.
No comment on price. As for the value of the acquisition – …read more