Indian restaurant search service provider Zomato has acquired US-based food portal Urbanspoon for $52m in an all-cash deal and intends to raise approximately $100m through a fresh funding in a month in order to fuel growth.
This purchase will give Zomato a foothold in key markets of both the US and Australia, reports International Business Times (IBT).
Zomato co-founder Deepinder Goyal was quoted by IBT as saying: "Our US entry has been in the cards for a while now." Urbanspoon is one of the largest market leaders in the America.
This acquisition pitches Zomato against market leader Yelp.
Presently valued at approximately $660m, once the fresh fundraising is completed, Zomato's valuation is estimated to touch approximately to $1bn.
According to Zomato co-founder Deepinder Goyal, both existing and new investors will participate in proposed fresh fund raising.
Currently, Zomato has around 35 million visitors a month and the new acquisition will take this number to almost 80 million.
Since last year, Zomato has been on an acquisition spree - it announced five acquisitions, namely in Italy, New Zealand, the Czech Republic, Slovakia and Poland, reports Financial Express.
