Zomato Acquires TongueStun; Enters into B2B Market

Delhi based food tech startup, Zomato acquires TongueStun, a Bengaluru based corporate caterer to mark its footprint into B2B space. However, the deal is done in a cash and stock for $18 million.

TongueStun was founded by Manjunath Ramakrishnan in 2012. It provides cafeteria management services to more than 1,500 companies which amount to nearly 1,50,000 meals daily to office-goers.  partner caterers. It also helps companies to find trusted caterers and vendors. The startup counts IBM, Accenture, Ernst & Young, Sony, Genpact, 3M, Mindtree and Deloitte as its clients. Currently, it is present in six cities- Bengaluru, Chennai, Hyderabad, Pune, Mumbai, and Gurgaon/Noida. Tonguestun had initially raised funding of $5millions from Unicorn Ventures and Harsh Chawla, who is a partner at private equity fund, True North.

With this acquisition, Zomato aims to offer its users an interesting feature to order food for pick up from the TongueStun’s onboard cafeterias using the Zomato app. “We see immense growth opportunity in the food@work, and with the help of TongueStun, we hope we’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 platform,” Deepinder Goyal, Founder & CEO, Zomato said in a statement.

Post acquisition, the employees of TongueStun has been lapped by Zomato and there will be no change in the construct of the team or its work. It will continue to work independently as any business partners. Zomato will now incorporate TongueStun on its app to explore its capabilities in order to proliferate the client base and stretch its reach.

The magnum opus of Deepinder Goyal’s and Pankaj Chaddah’s, Zomato has managed to develop a niche for itself within just eight years of its launch. Zomato has marked its presence in 22 different countries and it all started with Zomato acquiring Urbanspoon, a big player in Canada and Australia. The last year, Zomato acquired logistic service Runner (previously known as Roadrunner) and offered B2B services for hyperlocal deliveries. With Runner as their delivery executives and now TongueStun’s large clientele on board, Zomato strives to write its own success story.

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