 "There is nothing that beats local knowledge: Deepinder Goyal")
Zomato, the restaurant search service, is valued around Rs 1,000 crore, following the latest $37-million (Rs 228 crore) funding by Sequoia Capital. Founded in 2008, and covering over 230,000 restaurants in 12 countries, it made its first global acquisition - New Zealand-based Menu Mania, last week. Deepinder Goyal, co-founder, tells Reghu Balakrishnan the acquisition is the first of more to come. Edited excerpts:
Online food guide is still nascent in India. What is the growth potential?
India's fascination with smartphones, laptops, and tablets has fuelled growth in the food search and discovery segment. India is home to a whole range of startups solving problems in various sectors, and today we've become the preferred choice for new investments. We saw this development at its best in 2013, and we expect this trend to continue.
There has been a significant increase in the number of young professionals with high disposable income. Eating-out has become a popular option for this demographic, which has, in turn, reinforced the need for a restaurant discovery service. In terms of taste, we've been seeing a marked growth in the number of restaurants offering global cuisine, as well as an increase in the number of searches on Zomato for global cuisine.
How do you plan to increase your coverage?
Zomato provides in-depth information on over 233,000 restaurants across 12 countries. We are looking at taking it to new markets, while continuing to expand where we already operate. Target markets span the Americas, Europe, Southeast Asia, and Australia. Our energies are focused on scaling our business and product, globally.
What are the expansion plans in Africa and South America?
Even though we are present in South Africa and are seeing a fantastic response from the user community, North Africa is a region we have not forayed into just yet because of its relatively lower internet penetration.
We have to make sure that Zomato is the right product for each market we launch in. A rich dining and food culture, growing restaurant industry and a high number of Internet and mobile users are important points for us to consider before we take Zomato places. We plan to further foray into South America and Africa as a part of our extensive expansion.
What is the rationale behind strengthening presence in Scotland?
Keeping in mind our expansion plans, we were certain that we wanted to expand further into the UK. Scotland offers a demographic that is active on smartphones and the Internet. Additionally, a diverse and growing restaurant industry, and the encouraging feedback from the restaurant community, makes it a great market for our product.
Does Zomato have more acquisition plans, in line with the MenuMania buyout?
This acquisition is definitely the first of more to come.
Depending on the market, we will have to shift gears based on where we are launching.
The last round of funding we received from Info Edge and Sequoia Capital will drive further global expansion. From our past experience we have come to understand that there is nothing that beats local knowledge. Local players have an existing user base and the necessary mind-share.
How is the print guide doing? Will it be extended to other global markets?
So far the response towards the print guide has been great. In India and Dubai, the print editions of our guide have been popular with the user base as well as the restaurant community.
Depending on when a market is ready for a print guide, we'll consider launching a print edition there.
What are your capex plans? How will you fund the global expansion?
Our last $37-million round of funding from Sequoia Capital and Info Edge will fuel our global expansions.
Online food guide is still nascent in India. What is the growth potential?
India's fascination with smartphones, laptops, and tablets has fuelled growth in the food search and discovery segment. India is home to a whole range of startups solving problems in various sectors, and today we've become the preferred choice for new investments. We saw this development at its best in 2013, and we expect this trend to continue.
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What are your consumer insights?
There has been a significant increase in the number of young professionals with high disposable income. Eating-out has become a popular option for this demographic, which has, in turn, reinforced the need for a restaurant discovery service. In terms of taste, we've been seeing a marked growth in the number of restaurants offering global cuisine, as well as an increase in the number of searches on Zomato for global cuisine.
How do you plan to increase your coverage?
Zomato provides in-depth information on over 233,000 restaurants across 12 countries. We are looking at taking it to new markets, while continuing to expand where we already operate. Target markets span the Americas, Europe, Southeast Asia, and Australia. Our energies are focused on scaling our business and product, globally.
What are the expansion plans in Africa and South America?
Even though we are present in South Africa and are seeing a fantastic response from the user community, North Africa is a region we have not forayed into just yet because of its relatively lower internet penetration.
We have to make sure that Zomato is the right product for each market we launch in. A rich dining and food culture, growing restaurant industry and a high number of Internet and mobile users are important points for us to consider before we take Zomato places. We plan to further foray into South America and Africa as a part of our extensive expansion.
What is the rationale behind strengthening presence in Scotland?
Keeping in mind our expansion plans, we were certain that we wanted to expand further into the UK. Scotland offers a demographic that is active on smartphones and the Internet. Additionally, a diverse and growing restaurant industry, and the encouraging feedback from the restaurant community, makes it a great market for our product.
Does Zomato have more acquisition plans, in line with the MenuMania buyout?
This acquisition is definitely the first of more to come.
Depending on the market, we will have to shift gears based on where we are launching.
The last round of funding we received from Info Edge and Sequoia Capital will drive further global expansion. From our past experience we have come to understand that there is nothing that beats local knowledge. Local players have an existing user base and the necessary mind-share.
How is the print guide doing? Will it be extended to other global markets?
So far the response towards the print guide has been great. In India and Dubai, the print editions of our guide have been popular with the user base as well as the restaurant community.
Depending on when a market is ready for a print guide, we'll consider launching a print edition there.
What are your capex plans? How will you fund the global expansion?
Our last $37-million round of funding from Sequoia Capital and Info Edge will fuel our global expansions.