BookMyShow, the online entertainment ticketing company, has obtained Burrp from Network18. Burrp is a local restaurant recommendation engine based in Mumbai. The acquirement is being performed on a basis of slouch sale by Foodfesta Wellcare, a division of Big Tree, a related company of Reliance Industries. Reliance Industries is also the Network18’s parent company.
“The acquirement comprises transportations of key assets of Burrp to BookMyShow, including current restaurant partnerships and employees,” BookMyShow claimed to the media in a statement. Big Tree operates and possesses BookMyShow. “The budget for the slump sale is Rs 6.7 Lakh and has been confirmed on the basis of calculation carried out by the company,” said Network18 in a regulatory filing.”Burrp presently lists over 56,000 restaurants across 12 cities and is the oldest food-tech business of India. The revenue of the company during fiscal year 2016–2017 was Rs 56.67 Lakh making 0.69% of turnover for Network18. The net value as of this year was calculated Rs 28.89 Crore, Network18 claimed.
It further claimed that keeping into consideration the irrelevant contribution of Burrp to the income as well as the investments, and the focus need to be made, Network18 had made a decision to get rid of the Burrp business. “The acquirement is at liberal basis and being a slump sale does not have any effect on the company’s pattern of the shareholding,” Network18 claimed. It further added that the transport will be effectual from the month of July.
Established in 2006, Burrp was a leading player in the restaurant detection industry until it lost the race to rival Zomato. BookMyShow has been aiming on modifying into a total entertainment destination as it encounters competition from new rivals such as Paytm. “Food in India is an integral part and movies are a social activity of it. This is where Burrp comes into picture for us. We are eager to have Burrp on board with us and look forward to making profit from their technology, experience, and partnerships,” BookMyShow’s Head of Acquisitions and Mergers, Mansi Vora, claimed.
Well, let us see as to how much profit BookMyShow will make with the acquisition of Burrp.
