Zomato goes west with UrbanSpoon acquisition.
After rapid acquisitions in Europe and Asia-Pacific, Zomato has now acquired Seattle-based bar and restaurant guide Urbanspoon marking Zomato’s entry into the U.S market.
The undisclosed deal (rumour has it, it’s above $50 million!) is an all-cash deal, Zomato announced on Monday. This acquisition is Zomato’s 6th in six months and by far the largest. The company expects to derive at least 60% of its traffic from the U.S where the dining and restaurants markets grossed about $680 billion last year. This makes the U.S restaurant market one of the largest in the world. Deepinder Goyal, Zomato’s founder-CEO has long declared that the U.S market isn’t right for Zomato, but apparently things have changed.
According to Zomato’s COO and Co-founder Panjak Chaddah, “The opportunity came up.” Well, it certainly did in style. Urbanspoon has over a million registered reviewers and about 40 million visits per month providing a perfect launch pad for Zomato to compete with the currently dominating Yelp. Urbanspoon team of 50 will be integrated into Zomato team of 900 by the end of March.