UPDATED 00:51 EST / JANUARY 13 2015

NEWS

Urbanspoon acquired by Zomato for rumored $60 million

urbanspoonRestaurant review company Zomato Media Ptv Ltd has acquired Urbanspoon from IAC/InterActive Corp.

The price of the acquisition has not be disclosed, but is believed to be around the $60 million mark according to Geekwire, who broke the story.

Urbanspoon offers restaurant search, reviews and ratings and has a strong presence in the United States, Canada, U.K., Ireland, Australia and New Zealand.

Zomato offers a similar service in 19 countries, but unlike Urbanspoon it hires local residents to scan menus, take photos, and create recommendations, which the company says enables it to provide richer, more accurate data than other restaurant apps.

In addition to its base level curated reviews, Zomato also allows users to make restaurant bookings through integration of services from OpenTable Inc.

The acquisition of Urbanspoon will more than double Zomato’s web traffic from 35 million visits per month to over 80 million, the company said in a statement. It will also more than triple the company’s inventory of restaurants from 300,000 to more than 1,000,000 globally, and mean that Zomato is now active in 22 countries.

Based in New Delhi, India, Zomato is backed by leading venture capital firms Sequoia Capital, Info Edge and Vy Capital to the tune of $113.8 million.

Under the deal, Urbanspoon will be integrated into Zomato and will cease to trade as a separate brand.

The name, and the app will be missed by its many fans, many of who rely on its restaurant reviews several times a week when making dining choices. It can only be hoped that Zomato will improve on what Urbanspoon has done so well in the past.


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