Zomato has acquired Bengaluru-based startup TongueStun Food for about $18 million. The company announced its latest acquisition on Wednesday, and this is now Zomato’s 12th acquisition deal globally.
TongueStun was founded in 2012 by Manjunath Ramakrishnan. The company is an “online marketplace for enterprises to discover, engage and manage food at the workplace.” It lets you discover caterers with great references and according to your budget. It is spread across seven cities across India including Bengaluru, Chennai, Hyderabad, Gurgaon, Noida, Pune and Mumbai.
TongueStun claims to cater over 1500 companies as of now. It reportedly serves hundreds of mid-large sized companies including IBM, Accenture, E&Y, Sony, Genpact, 3M, Mindtree and Deloitte. It has so far raised around $5 million funding from Unicorn Ventures and from partner at private equity fund, True North, Haresh Chawla.
Deepinder Goyal, Co-Founder & CEO, Zomato confirmed the acquisition of TongueStun to TOI by saying, “We don’t see the ceiling to how big this market could become just yet. What we know is that this market is very high frequency, and customers are very sticky as they end up placing more than 20 orders a month on the Tonguestun platform.”
Zomato has acquired the company in cash and stock deal. After the acquisition, Zomato plans to incorporate features of TongueStun within its online restaurant guide and food ordering app, however, ToungueStun team will reportedly operate independently.
Recently, Zomato announced its expansion in three new cities in India. The company has started operations in Vijayawada, Madurai, and Cuttack as part of its expansion plans. Zomato’s online ordering services are now available across 31 cities in India.