Zomato today announced it has acquired Urban Spoon, the restaurant recommendation and review service in an all-cash deal. The details of the deal haven’t been announced but reports peg it to be in the range of $50 million. This acquisition gives Zomato an entry into the US market as well as Australia and Canada. Post the acquisition, Zomato will be present in 22 countries. Also Read - Dunzo says partner database breached, user data exposedAlso Read - Google offers Dunzo delivery through Pay app
According to a statement issued by the company, Zomato’s reach would more than double from 35 million to 80 million visits per month and also increase its restaurant coverage from 350,000 restaurants to over a million. Urbanspoon will be integrated into Zomato and all Urbanspoon.com traffic will go to Zomato.com and its app users will be migrated to Zomato’s app. Also Read - Amazon launches food delivery service 'Amazon Food' in India
With this acquisition Zomato will be present in 22 markets. The company has raised over $100 million, with two rounds in November worth $37 million and $60 million from existing investors Info Edge and Sequoia Capital as well as Vy Capital to fund its global expansion.
Zomato has been in an acquisition spree having acquired New Zealand-based Menumania, Italy’s Cibando, Czech Republic’s Lunchtime.cz, Obedovat.sk from Slovakia and Poland’s Gastronauci. With Urbanspoon’s acquisition, Zomato will be available in 22 countries.
“Our US entry has been in the cards for a while now, and we’re delighted to be doing so by welcoming Urbanspoon into Zomato. They have a strong presence in the US and the UK, and they also dominate restaurant search in Australia and Canada. Urbanspoon has a huge following, and is home to legions of people who are as passionate about food as we are. We will soon be integrating the two products to bring the best of both products to our users in the United States as well as the rest of the world,” Deepinder Goyal, Founder and CEO of Zomato said in a statement issued to announce the acquisition.