India-based restaurant search and discovery service Zomato has acquired its Italy-based counterpart Cibando. The term and details of the deal have not been revealed, however what is known is that the whole of Cibando’s team would be joining Zomato and help it to establish its presence in Italy.
Deepinder Goyal, Founder and CEO of Zomato, said, “Cibando is one of the largest restaurant search services in Italy. Their existing traffic and user base will give us a great start as we launch Zomato in the country. And we love the Cibando team – I think we have a lot to learn from them about the local market.”
Since Cibando already has a restaurant database and incoming traffic, Zomato’s would find it easy to step on a growth path in Italy. The company had recently made other acquisitions in Europe as well – Lunchtime in Czech Republic and Obedovat in Slovakia.
The company had recently raised USD 60 million in funding to fuel its global expansion. It is planning to invest USD 6 million in Cibando over the next 2 years, to grow its team and strengthen its presence in the various cities in the country.
Zomato is currently operational in 20 countries, and will soon launch in Italy once the acquisition is complete. It is aiming to launch in 15 more countries in the next year or so. The company uses a lot of on ground staff to keep its restaurant’s listing and menus up to date. Hence in this model it does make sense for the company to acquire its country-specific rivals rather than starting from scratch.