BookMyShow acquires restaurant search engine Burrp
New Delhi: Online entertainment ticketing firm BookMyShow (BMS) has acquired Burrp, a Mumbai-based local restaurant recommendation engine, from Network18.
The acquisition is being carried out on a slump sale basis by Foodfesta Wellcare, an arm of Big Tree—an associate firm of Reliance Industries, which is also the promoter group company of Network18.
“The acquisition includes transfer of Burrp’s key assets to BookMyShow, including employees and existing restaurant partnerships,” BMS said in a statement. Big Tree owns and operates BookMyShow platform.
In a regulatory filing, Network18 said: “The consideration for the slump sale is Rs6.7 lakh and has been determined on the basis of valuation carried out by EY.”
Burrp is India’s oldest food-tech business and currently lists over 56,000 restaurants across 12 cities. Burrp’s revenue during the 2016-17 fiscal year was Rs56.67 lakh accounting for 0.69% of Network18’s turnover. The net worth as on 31 March 2017 stood at a negative Rs28.89 crore, Network18 said.
It further said considering the “insignificant contribution” of Burrp to revenue and the investments and the focus required to be made, Network18 had decided to divest the Burrp business.
“The transaction is at arms’ length basis and being a slump sale does not have any impact on the shareholding pattern of the company,” Network18 said. It added that the transfer will be effective from 1 July.
Founded in 2006, Burrp was a prominent player in the restaurant discovery space until it lost ground to competitor Zomato.
BookMyShow has been focusing on transforming into a complete entertainment destination as it faces competition from new players like Paytm.
“Movie going in India is a social activity and food is an integral part of it. This is where Burrp fits in for us. We are excited to have Burrp on board and look forward to benefiting from their experience, technology and partnerships,” BMS head (mergers and acquisitions) Mansi Vora said.
- LIC increases stake in Dena Bank to over 14%
- ED plans new chargesheet against Vijay Mallya after tracking shell companies
- Madhya Pradesh: two judges lose jobs for having over two kids
- Government bonds oversubscribed as FPIs bid for $700 million
- Coalition against fascism sees Arvind Kejriwal, Yogendra Yadav coming together