India-based online food ordering and restaurant discovery platform Zomato has completed the $18m acquisition of online corporate catering marketplace TongueStun Food.
Established in 2012, Tonguestan aggregates caterers and restaurants for office canteens and has a network of more than 1,000 food partners, as well as over 1,500 companies, including Accenture, Mindtree and Deloitte.
With a presence in six Indian cities, the company currently delivers more than 105,000 meals every day.
Zomato co-founder and CEO Deepinder Goyal was quoted by The Times of India as saying: “We don’t see the ceiling to how big this market could become just yet. What we know is that this market is very high frequency, and customers are very sticky as they end up placing more than 20 orders a month on the Tonguestun platform.”
A statement posted on Zomato website read: “For all of Tonguestun’s customers, all contracts stay intact – and again, nothing changes. It will be business as usual today, as well as tomorrow. Everything will run as smoothly as it previously did. With more execution muscle, we are only going to provide TongueStun’s users more delight and better food choices. Our increased speed of growth will benefit our food partners – caterers and restaurants tremendously. The team will stay intact as 100% of the team at TongueStun is being retained in their original roles.”
In the recent years, Zomato acquired 11 startup businesses in the country including Runnr, MapleGraph, Sparse Labs, NexTable, Mekanist, Urbanspoon, Cibando, LunchTime, Obedovat and Menu Mania.
In February, Alibaba’s payment affiliate Ant Financial agreed to acquire a stake in Zomato for $50m.