On January 12, Zomato acquired Urbanspoon for an alleged $60 million. Founded in New Delhi in 2008, Zomato has acquired six local restaurant search companies in the past six months, but taking over Urbanspoon — founded in Seattle in 2006 — is their first US acquisition.
“We felt joining forces with Urbanspoon would be the best way to turbocharge our growth and make our way into the US, Canada and Australia. Without question, this will also help us take significant strides forward in the markets we’ve been sharing with Urbanspoon so far – the UK, Canada, New Zealand, and Ireland,” said Zomato founder and CEO Deepinder Goyal on a Zomato blog post.
Currently, Zomato operates in more than 20 countries across the globe, and now counts more than 330,000 listed restaurants in Canada, Brazil, Ireland and other countries. Last year, Urbanspoon boasted an audience of 30 million unique visitors monthly, and Zomato is said to have posted similar numbers. This acquisition, then, should give Zomato a running head start to claiming the North American market.
This infographic, also posted on the Zomato blog, illustrates what kind of audience growth $60 million can buy.
Zomato’s CEO and founder is ready to go head-to-head with review giant Yelp. “We’re going to be picking [a fight] with Yelp. In the market they have dominated for so long. After all, like Mark Twain famously said, it isn’t the size of the dog in the fight, it’s the size of the fight in the dog,” said Goyal on a Zomato blog post.
Zomato versus Yelp could prove to be a very worth battle. The acquisition will more than double Zomato’s traffic from 35 million monthly visits to 80 million, which will begin to close on Yelp’s own statistic of 139 million.