After acquiring US based rival Urbanspoon in an all-cash deal, India based restaurant listing site Zomato is now expanding its business into food orders, starting in its home market of India next month.
The company plans to launch a new service that will allow customers across India order food directly from its platform on March 16 with an initial 2,000 partner restaurants. The firm expects to reach 10,000 supported restaurants nationwide within a few months of the service’s debut.
Zomato CEO and co-founder Deepinder Goyal told TechCrunch that, “We have a sales team of around 300 in India and 5,000-odd advertisers… these partners know the volume we bring to them so it is quite easy for us to launch this [new service].”
It is currently testing the service among its 500 staff in India and a handful of restaurants. In November 2014, the firm had raised USD 60 million in series E round led by Vy capital, Info Edge Limited and Sequoia Capital. Also in January this year, Zomato announced that it is now in talks to raise about USD 100 million. Currently, it is valued at around USD 660 million. Till date, the firm has secured a total capital around USD 113.8 million over multiple rounds of funding.
There’s no immediate plan to expand food delivery to the 21 other countries where Zomato is present, but Goyal said we can expect “an aggressive roll out in other markets where we are strong” once the service is established in India. Zomato was founded in 2008 by Deepinder Goyal and Pankaj Chaddah. The company is present in more than 100 cities across India, UK, Canada, Lebanon, UAE, Turkey, New Zealand, Poland and the Czech Republic, among others.
The online food delivery space is seeing a lot of action lately. While a number of food delivery startups are raising funding in the country, the biggest move was Foodpanda’s acquisition of its rival JUST EAT in India and killing all visible competition. However this new announcement by Zomato will make the Rock