.2 Feb 2019 15:59
Peer transaction analysis
Due to the early stage nature of the business we are not putting together revenue and profit forecasts
for BigDish at this stage. Instead, in order to ascribe a valuation to the shares we take note of the
ongoing food tech investment trends and look at several transactions amongst what we consider to
be the company’s closest peers.
Eatigo
Eatigo is perhaps BigDish’s closest peer in terms of business model, location of operations and size,
although as a private company details of funding rounds are limited. Founded in 2013, the company is
a yield management and restaurant reservation platform operating in Bangkok, Pattaya, Singapore,
Kuala Lumpur, Hong Kong, Manila and India, offering time-based discounts of up to 50% on restaurant
food. According to the company’s website it has seated over 5 million diners at more than 2,000
venues, with the app downloaded by more than 1.5 million users.
BigDish believes that its current stage of development is comparable to Eatigo when in December 2015
(18 months following launch) Eatigo received a Series A investment, estimated at c.$5 million according
to media sources (Source: Crunchbase). At time the company reportedly had c.400 restaurant partners
and was operating in two countries (Source: https://www.techinasia.com/offpeak-restaurantbooking-startup-eatigo-raises-series-a-funding)
With series A rounds typically seeing issuers give away c.15-25% of their equity we therefore
estimate that Eatigo was valued at $20 million (£15.73 million) at the time of its Series A funding
(assuming a 25% equity stake was taken). As a floor valuation, applying the same numbers to
BigDish, implies a share price of 5.5p at current exchange rates. This could prove to be a conservative
comparable on a restaurant number basis however as BigDish currently has just over 700 restaurant
partners signed up across its Asia and UK operations vs Eatigo’s 400 at the time of the investment. In
addition, BigDish has exposure to the more mature and higher priced UK industry, whereas Eatigo does
not operate in the territory.
Eatigo completed a Series B fundraise in October 2016 at which point it reportedly had grown to 700
partner restaurants, with media sources suggesting that c.$10 million was invested by travel and
restaurant website owner TripAdvisor. A further round, described as a pre-Series C fundraise, in July
2018 saw a further raise of c.$10 million (Source: Crunchbase).
In July 2017 the business then acquired the operations of Pune-based (India) Ressy, a mobile
application that provides last-minute discounts at restaurants, and formed part of its expansion into
India. Being interviewed by the Hindu Business Line around that time, Siddhanta Kothari, Chief
Financial Officer of Eatigo, suggested the business had a valuation of $70 million (following the
Tripadvisor funding round) and expected to be valued at $100 million following its launch in the
Philippines and India. The
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