Food order and delivery major Zomato has made one more acquisition and this time itâ€™s TongueStun, a startup in the corporate catering space. While Zomato has not disclosed the deal amount, a Times of India report states that it is worth $18 million.
Operating in 6 cities, Mumbai, Pune, Chennai, Bengaluru, Hyderabad and Gurugram/Noida, and servicing around 1500 companies, TongueStun counts IBM, Accenture, E&Y, Sony, Genpact, 3M, Mindtree and Deloitte among its. TongueStun has tie-ups with 1500 service partners and they service over 1.5 lakh food orders for the companies for their employees.
With the deal done, Zomato will take TongueStun on to is app and it expands their business in more ways than one. For starters, employees in these companies could order food on Zomatoâ€™s app and pick it up from their companyâ€™s cafeteria and carry home.
"We see immense growth opportunity in the food@work space, and with the help of TongueStun we hope weâ€™re able to delight our users at their workplaces as well. 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 platformâ€ť Deepinder Goyal, Founder & CEO, Zomato said in a statement.
The $18 million deal will be a cash and stock deal. In terms of funds raised by the startup, it has raised around $5 million and the key investors are Uniqorn Ventures, o3 Capital and Haresh Chawla, a partner at private equity fund, True North.
For the record, this is the 12th startup that Zomato has acquired, the significant one being Runnr, one of the leading logistics firms. Post the acquisition, Zomato has over 55,000 delivery partners as a part of its last mile delivery fleet. This is compared to roughly 1800 delivery partners in Jan 2018.
Zomato has over 50,000 restaurant partners on its food delivery platform and claims to processes over 16.5 million orders a month.