In almost a year since foodtech Zomato acquired Runnr, a hyperlocal logistics startup, for their logistics platform and a workforce of employees, Zomato has announced that they have acquired TongueStun for $18 million, a deal that has been backed by investors Sequoia Capital. This acquisition by Zomato is primarily to broaden their business in the corporate segment.
Prior to the acquisition, TongueStun, an online food managing service, has connected caterers with corporate companies, and currently has 1,000 food partners and 1,500 corporate companies on its roster, in metros such as Mumbai, Bengaluru, Pune, Gurgaon and Hyderabad. The company, which claims to have served about 1 lakh meals per day, has helped corporates such as Genpact, Deloitte, Accenture, Mindtreem.etc., offer their employees a greater meal experience. Now, following the acquisition by Zomato, the services of TongueStun will be integrated in Zomato’s app.
Recently, Zomato has ended deals with restaurants that have been delisted by the Government for not having a valid license, and have also received a funding of $200 million to support their farm to fork business model. Though they are dominant on the online space with regard to food deliveries, Zomato wishes to expand its business by supplying raw materials to around 50,000 restaurants in the near future.