Online food ordering and restaurant discovery platform Zomato has acquired a Bengaluru-based startupTongueStunFood. The cash and stock deal is fixed at about $18 million. Tonguestan works as an online marketplace and is a caterers and restaurants aggregation platform.
The startuphas so far raised less than $5 million from Uniqorn Ventures, a hospitality fund run by investment bank o3 Capital, and Haresh Chawla, a partner at private equity fund True North.
Deepinder Goyal, Co-founder CEO at Zomato, said, "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 Tonguestunplatform."
Founded by Manjunath Ramkrishnan in 2012, TongueStun has over 1,000 curated food partners along with 1,500 companies on its platform in six cities including Bengaluru, Mumbai, Hyderabad, Gurugram, and Pune.
Zomato will integrate TongueStun app into it. TongueStuns acquisition will help it to scale its business in corporate segment.
The TongueStan acquisition for Zomato marks its 12th such deal. Last year, the company, in one of its bigger deals, had acquired hyperlocal logistics startup Runnrto add muscle to its delivery capabilities.