Zomato On Acquisition Spree Again, Buys Out U.S. Firm Nextable

NextTable is the ninth acquisition for Zomato in the past year. Urbanspoon was its largest acquisition for $52 million in January and marked its entry into the US, Australia and Canada markets.

Last year, Zomato had acquired dominant local restaurant search players in New Zealand, Poland, the Czech Republic, Slovakia, Turkey and Italy.

Its biggest competitor in the US is Yelp, which is also the biggest player in the business.

In the domestic market, Zomato will start online ordering operations in Bangalore and Mumbai by end of May.

"The product will hit the market with around 4,000 restaurant partners as of now. Over the next few months, we are aiming to offer this feature with over 10,000 restaurant partners in India," Zomato co-founder and chief executive Deepinder Goyal said.

"We are hoping to start processing around 40,000 orders a day in the very near term," he said.

He expects revenues to double in the next fiscal with this new stream of revenue model.

"Through this we will charge restaurants a commission based on the rating of the outlets," Goyal said.

Zomato competes with Foodpanda in the NCR region and with Tiny Owl in Mumbai.

Zomato, along with online marketplaces Flipkart, Snapdeal, and cab aggregator Ola are among the highest valued tech-enabled platforms currently in the country, backed by private capital, according to analyst reports.
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