 "Mekanist is one of the largest deals, apart from Urbanspoon: Deepinder Goyal")
Zomato recently made headlines after acquiring Urbanspoon in the US. With funds pouring in, the online restaurant search service provider has now made another acquisition in Turkey. Deepinder Goyal, founder and chief executive officer of Zomato, tells Digbijay Mishra in an emailed interview what the latest acquisition means for the company and how it plans to serve up globally. Edited excerpts:
How big is the Mekanist buy?
This is an all-cash deal. It is one of the largest deals apart from Urbanspoon.
We do not have any more acquisitions planned for now. Over the next 6-12 months, we will focus on strengthening our presence in all the markets that we have recently forayed into. This includes the US, Canada, Australia, the Czech Republic, Slovakia, Poland and Italy. In Turkey, our focus will be on integrating the two products. We will phase this out over the next couple of months to ensure a smooth transition for users and merchants of both Zomato and Mekanist.
The seven acquisitions in the past six months have definitely been a game changer. Things are moving very quickly and we can't wait to sink our teeth into all that 2015 holds for us.
On your presence in 22 countries…
The seven companies we have acquired have given us an inorganic market entry into the following markets: Lunchtime, the Czech Republic; Obedovat, Slovakia; Gastronauci, Poland; Cibando, Italy, Urbanspoon, the US and Australia; and Mekanist, Turkey.
What kind of funding would you require to integrate the US acquisition (Urbanspoon) coupled with the one in Turkey?
We are fairly sound on funds as of now, but will aise another round over the next couple of months. Over the next 12-18 months, we will invest an additional $50 million in the US, Australia and Canada. Turkey is one of the key strategic markets for Zomato, and we have the resources to optimize our return on investment by scaling up operations.
How many employees did Mekanist have and are you going to absorb all of them?
Zomato has a team of 27 people in Turkey, most of whom are based out of the local headquarters in Istanbul. Mekanist has a team size of 22 people, we are still in the process of figuring out what the combined team will look like. Ali and Eren , the founders of Mekanist, will be joining Zomato's leadership team in Turkey.
What balance do you seek between organic and inorganic growth?
It's not really about build-versus-buy for us; it's about hitting the ground running with the right team. We will focus on deeper penetration in our current markets while also seeking depth within the restaurant space.
How big is the Mekanist buy?
This is an all-cash deal. It is one of the largest deals apart from Urbanspoon.
Also Read
How many more acquisitions are on the anvil?
We do not have any more acquisitions planned for now. Over the next 6-12 months, we will focus on strengthening our presence in all the markets that we have recently forayed into. This includes the US, Canada, Australia, the Czech Republic, Slovakia, Poland and Italy. In Turkey, our focus will be on integrating the two products. We will phase this out over the next couple of months to ensure a smooth transition for users and merchants of both Zomato and Mekanist.
The seven acquisitions in the past six months have definitely been a game changer. Things are moving very quickly and we can't wait to sink our teeth into all that 2015 holds for us.
On your presence in 22 countries…
The seven companies we have acquired have given us an inorganic market entry into the following markets: Lunchtime, the Czech Republic; Obedovat, Slovakia; Gastronauci, Poland; Cibando, Italy, Urbanspoon, the US and Australia; and Mekanist, Turkey.
What kind of funding would you require to integrate the US acquisition (Urbanspoon) coupled with the one in Turkey?
We are fairly sound on funds as of now, but will aise another round over the next couple of months. Over the next 12-18 months, we will invest an additional $50 million in the US, Australia and Canada. Turkey is one of the key strategic markets for Zomato, and we have the resources to optimize our return on investment by scaling up operations.
How many employees did Mekanist have and are you going to absorb all of them?
Zomato has a team of 27 people in Turkey, most of whom are based out of the local headquarters in Istanbul. Mekanist has a team size of 22 people, we are still in the process of figuring out what the combined team will look like. Ali and Eren , the founders of Mekanist, will be joining Zomato's leadership team in Turkey.
What balance do you seek between organic and inorganic growth?
It's not really about build-versus-buy for us; it's about hitting the ground running with the right team. We will focus on deeper penetration in our current markets while also seeking depth within the restaurant space.