Restaurant discovery service Zomato has announced the acquisition of Turkey’s Mekanist, increasing its coverage from about 27,500 restaurants in Istanbul and Ankara to more than 50,000 restaurants across Turkey.
Deepinder Goyal, founder and CEO of Zomato, said, “Mekanist has established itself as one of the heavyweights in the online restaurant search and discovery space inTurkey, and is one of the first and most successful tech startups to emerge from the Turkish startup ecosystem. We’re excited to be joining forces with them as we continue to grow in one of our most important markets.”
Mekanist’s traffic and restaurant-related content will be shifted to Zomato, while Turkish restaurants will be able to make use of Zomato’s hyperlocal advertising model to reach out to target customers.
Over the past year, Zomato acquired five restaurant search players in New Zealand, Poland, Czech Republic, Slovakia and Italy. The most recent acquisition was of Urbanspoon for about $52 million earlier this month, which enabled Zomato to enter US and Australian markets.
Founded in 2008, Zomato has also expanded to other global markets on its own, having built a presence from Brazil and Chile to Lebanon and South Africa.
“It’s a good business strategy at this stage in lifecycle of Zomato to focus on expansion with (investor) funding,” said Sharad Sharma, angel investor and founder of software product think-tank iSpirt.
“Zomato’s valuation will go up when it becomes a category leader in key markets,” he said.
Led by Info Edge (India) Limited and US based investment fund Vy Capital, with participation from Sequoia Capital, Zomato raised about $60 million last November to fuel its global expansion efforts. It is currently in talks to raise another $80 million.