BookMyShow, an online movie ticket and event booking platform announced that it has acquired Mumbai based restaurant search engine named Burrp.
The deal was finalized just for Rs. 6.7 lakh on basis of valuation carried out by EY.
As reported by Network18, 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. This might be one of the reasons behind such a thought.
With no profit or huge turnaround whatsoever Network18 came to such a decision.After 2 months of Network 18 gave an approval to sell Burrp , they wanted to sell their subsidiary business to Foodfesta Wellcare Private Ltd. But back in 2009 too they sold Burrp at Rs. 4.25 crore to Infomedia18.
There has been a lot of changes in Burrp’s management from 2010 to 2014 when Reliance Industries bought Network18 and the whole management was changed and relaunched. This current acquisition would be carried out by Foodfesta Wellcare, a part of Big Tree—an associate firm of Reliance Industries. The acquisition was carried out on slump sale basis.
What’s The Deal?
Burrp is one of the oldest food company in India. It was found back on 2006. Burrp currently boasts off over 60,000 restaurants across 14 cities. Currently it also included offers and free coupons and buying tickets for F&B events.
With this deal, BookMyShow robs in all the restaurant partnerships and employees of Burrp. Besides ticketing booking and pre-show booking , BookMyShow also allows pre-booking of food and beverages for movie halls. Thus it has made collaborations with a lot of known food chains.
It has partnered with almost 2,100 food chains ranging from local ones to popular ones like McDonald’s, Chaayos, Mainland China, Dunkin Donuts, Barbeque Nation, Subway, Bikanerwala and many more.
Who Said What?
Mansi Vora, BMS head (mergers and acquisitions), said
“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”
Network18 said,
“The transaction is at arms’ length basis and being a slump sale does not have any impact on the shareholding pattern of the company”
BookMyshow earlier this year has robbed in Hyderabad-based MastiTickets and Pune based DIY event platform Townscript. In 2015 they have established their market in South east Asia and raised whooping profits. They are the best ones in market on their field but with PayTm bagging in Insider.in and Alibaba Pictures, it must be a threat for BookMyShow. But with acquisition of Burrp they are ready to give a strong competition to their counterparts in market.
