Media & Entertainment

Zomato Buys NexTable To Rival OpenTable And Yelp In Reservations

Comment

Image Credits:

Just one week after Zomato raised a round valuing it at more than $1 billion and acquired a point-of-sale startup, the India-based restaurant services company has made another acquisition. Zomato has acquired NexTable, a U.S.-based restaurant reservations and table-management platform that competes against the likes of Priceline’s OpenTable and SeatMe from Yelp.

The service will soon be renamed “Zomato Book,” Zomato says. Terms of the deal are not being disclosed except to note that it is a cash and stock deal and that the team is also coming over with the acquisition, including CEO and founder TC DeSilva and Robert Tyree, who was instrumental in building the online web portal and widgets to let restaurants update their own profiles. (We’re still trying to find out the terms.)

NexTable was bootstrapped with no outside funding and was based out of Charlotte, North Carolina, and it seems that this was one of the reasons why the company sold to Zomato.

“For any new table reservations product, no matter how good it is, it’s very hard to get businesses to adopt the product at scale for two reasons. First, it is hard to scale a sales team without massive funding. Secondly, it is hard to sell the product if you don’t have a significant consumer presence,” TC DeSilva said in a statement. “Zomato solves both these issues for us, and we are excited to partner with them to realise the true potential of what we have built.”

India, UAE and Australia will be the first international markets where Zomato will be taking NexTable’s tech, starting later this year, Pankaj Chaddah, co-founder and COO of Zomato, told me in an interview.

This is Zomato’s second acquisition in the U.S. after buying restaurant listings and reviews site Urbanspoon in January of this year from its owner IAC. Zomato now confirms that this deal was for $52 million.

NexTable will give Zomato another service to complement its listings, and potentially better monetise them. Not unlike the way that Yelp integrated SeatMe, consumers will be able to search for a place to eat, check out recommendations and reviews from others, and then book a table there. Zomato can make revenues both on advertising on the search platform, as well as by taking a cut on reservations that it successfully makes for those establishments.

And the longer-term plan will also be to offer other services to the restaurants as well, specifically in the area of loyalty services and payments by way of the MaplePOS acquisition announced last week; and also in online ordering. The company also already lets restaurant businesses update their menus, deals and discounts on a real-time basis with Zomato.

To add to this, NexTable brings some interesting mobile innovations to Zomato, which has built its business around not just online but also mobile-based usage. Specifically, NexTable has developed technology that lets restauranteurs update their data on the platform from smartphones and tablets, which makes a lot of sense considering the mobile nature of many of these businesses.

“We want to own the communication layer between restaurant businesses and customers. NexTable will add to this layer by bringing in the convenience of easy, online reservations for thousands of restaurants to our millions of users,” Chaddah said, noting that reservations was one of the last segments that Zomato needed to fill out its business offering. “NexTable completes the value chain between the consumer and the restaurant.”

To date, Zomato has made nine acquisitions in the past nine months with others made in Australia, Canada, New Zealand, Poland, the Czech Republic, Slovakia, Turkey, and Italy, as well as its home market of India. Zomato is now live in 22 countries.

More TechCrunch

After Apple loosened its App Store guidelines to permit game emulators, the retro game emulator Delta — an app 10 years in the making — hit the top of the…

Adobe comes after indie game emulator Delta for copying its logo

Meta is once again taking on its competitors by developing a feature that borrows concepts from others — in this case, BeReal and Snapchat. The company is developing a feature…

Meta’s latest experiment borrows from BeReal’s and Snapchat’s core ideas

Welcome to Startups Weekly! We’ve been drowning in AI news this week, with Google’s I/O setting the pace. And Elon Musk rages against the machine.

Startups Weekly: It’s the dawning of the age of AI — plus,  Musk is raging against the machine

IndieBio’s Bay Area incubator is about to debut its 15th cohort of biotech startups. We took special note of a few, which were making some major, bordering on ludicrous, claims…

IndieBio’s SF incubator lineup is making some wild biotech promises

YouTube TV has announced that its multiview feature for watching four streams at once is now available on Android phones and tablets. The Android launch comes two months after YouTube…

YouTube TV’s ‘multiview’ feature is now available on Android phones and tablets

Featured Article

Two Santa Cruz students uncover security bug that could let millions do their laundry for free

CSC ServiceWorks provides laundry machines to thousands of residential homes and universities, but the company ignored requests to fix a security bug.

17 hours ago
Two Santa Cruz students uncover security bug that could let millions do their laundry for free

OpenAI’s Superalignment team, responsible for developing ways to govern and steer “superintelligent” AI systems, was promised 20% of the company’s compute resources, according to a person from that team. But…

OpenAI created a team to control ‘superintelligent’ AI — then let it wither, source says

TechCrunch Disrupt 2024 is just around the corner, and the buzz is palpable. But what if we told you there’s a chance for you to not just attend, but also…

Harness the TechCrunch Effect: Host a Side Event at Disrupt 2024

Decks are all about telling a compelling story and Goodcarbon does a good job on that front. But there’s important information missing too.

Pitch Deck Teardown: Goodcarbon’s $5.5M seed deck

Slack is making it difficult for its customers if they want the company to stop using its data for model training.

Slack under attack over sneaky AI training policy

A Texas-based company that provides health insurance and benefit plans disclosed a data breach affecting almost 2.5 million people, some of whom had their Social Security number stolen. WebTPA said…

Healthcare company WebTPA discloses breach affecting 2.5 million people

Featured Article

Microsoft dodges UK antitrust scrutiny over its Mistral AI stake

Microsoft won’t be facing antitrust scrutiny in the U.K. over its recent investment into French AI startup Mistral AI.

18 hours ago
Microsoft dodges UK antitrust scrutiny over its Mistral AI stake

Ember has partnered with HSBC in the U.K. so that the bank’s business customers can access Ember’s services from their online accounts.

Embedded finance is still trendy as accounting automation startup Ember partners with HSBC UK

Kudos uses AI to figure out consumer spending habits so it can then provide more personalized financial advice, like maximizing rewards and utilizing credit effectively.

Kudos lands $10M for an AI smart wallet that picks the best credit card for purchases

The EU’s warning comes after Microsoft failed to respond to a legally binding request for information that focused on its generative AI tools.

EU warns Microsoft it could be fined billions over missing GenAI risk info

The prospects for troubled banking-as-a-service startup Synapse have gone from bad to worse this week after a United States Trustee filed an emergency motion on Wednesday.  The trustee is asking…

A US Trustee wants troubled fintech Synapse to be liquidated via Chapter 7 bankruptcy, cites ‘gross mismanagement’

U.K.-based Seraphim Space is spinning up its 13th accelerator program, with nine participating companies working on a range of tech from propulsion to in-space manufacturing and space situational awareness. The…

Seraphim’s latest space accelerator welcomes nine companies

OpenAI has reached a deal with Reddit to use the social news site’s data for training AI models. In a blog post on OpenAI’s press relations site, the company said…

OpenAI inks deal to train AI on Reddit data

X users will now be able to discover posts from new Communities that are trending directly from an Explore tab within the section.

X pushes more users to Communities

For Mark Zuckerberg’s 40th birthday, his wife got him a photoshoot. Zuckerberg gives the camera a sly smile as he sits amid a carefully crafted re-creation of his childhood bedroom.…

Mark Zuckerberg’s makeover: Midlife crisis or carefully crafted rebrand?

Strava announced a slew of features, including AI to weed out leaderboard cheats, a new ‘family’ subscription plan, dark mode and more.

Strava taps AI to weed out leaderboard cheats, unveils ‘family’ plan, dark mode and more

We all fall down sometimes. Astronauts are no exception. You need to be in peak physical condition for space travel, but bulky space suits and lower gravity levels can be…

Astronauts fall over. Robotic limbs can help them back up.

Microsoft will launch its custom Cobalt 100 chips to customers as a public preview at its Build conference next week, TechCrunch has learned. In an analyst briefing ahead of Build,…

Microsoft’s custom Cobalt chips will come to Azure next week

What a wild week for transportation news! It was a smorgasbord of news that seemed to touch every sector and theme in transportation.

Tesla keeps cutting jobs and the feds probe Waymo

Sony Music Group has sent letters to more than 700 tech companies and music streaming services to warn them not to use its music to train AI without explicit permission.…

Sony Music warns tech companies over ‘unauthorized’ use of its content to train AI

Winston Chi, Butter’s founder and CEO, told TechCrunch that “most parties, including our investors and us, are making money” from the exit.

GrubMarket buys Butter to give its food distribution tech an AI boost

The investor lawsuit is related to Bolt securing a $30 million personal loan to Ryan Breslow, which was later defaulted on.

Bolt founder Ryan Breslow wants to settle an investor lawsuit by returning $37 million worth of shares

Meta, the parent company of Facebook, launched an enterprise version of the prominent social network in 2015. It always seemed like a stretch for a company built on a consumer…

With the end of Workplace, it’s fair to wonder if Meta was ever serious about the enterprise

X, formerly Twitter, turned TweetDeck into X Pro and pushed it behind a paywall. But there is a new column-based social media tool in town, and it’s from Instagram Threads.…

Meta Threads is testing pinned columns on the web, similar to the old TweetDeck

As part of 2024’s Accessibility Awareness Day, Google is showing off some updates to Android that should be useful to folks with mobility or vision impairments. Project Gameface allows gamers…

Google expands hands-free and eyes-free interfaces on Android