After raising a $50 million round recently with a valuation of over $1 billion, Zomato has today acquired US-based NexTable , a restaurant reservations and table-management platform.
Terms of the deal are still undisclosed but it is a cash and stock deal and the service will soon be renamed as Zomato Book. As part of the deal, NexTable’s team is also coming over with the acquisition, including CEO and founder TC DeSilva and Robert Tyree. Deepinder Goyal, CEO of Zomato had mentioned the launch of table reservations yesterday in a tweet.
India-based restaurant listing platform, Zomato recently acquired MapleGraph to launch Zomato Base. Even though NexTable is US-based, Zomato Book will be launched in Australia, UAE and India first since the company has a strong foothold in these markets. For NexTable, the acquisition made sense since they were looking for the firepower to grow.
DeSilva, CEO and founder at NextTable said-
For any new table reservations product, no matter how good it is, it’s very hard to get businesses to adopt the product at scale for two reasons. First, it is hard to scale a sales team without massive funding. Secondly, it is hard to sell the product if you don’t have a significant consumer presence. Zomato solves both these issues for us, and we are excited to partner with them to realise the true potential of what we have built.
Zomato has been promising to expand into a number of different areas for a while, including online ordering, table reservations, and cashless payments and this acquisition if definitely a step closer to these objectives.
Till now, Zomato has made nine acquisitions in last nine months. Zomato had recently acquired local dominant restaurant search players in Canada, Australia, New Zealand, Poland, Turkey, Italy, Czech Republic, Slovakia, as well as its home market of India. It is now present in a staggering 22 countries.
Apart from listing and reviews, Zomato will now own the communication channel between hotels and customers via online ordering and table reservations. This also opens up a lot of possibilities in terms of monetization.