Zomato food delivery men take a COVID-19 test at Krishnankovil Primary Health Center in Nagercoil on Wednesday, May 12, 2021.
Online food delivery platform Zomato on Tuesday said its board has approved a loan of up to $150 million (about Rs 1,145 crore) to digital grocery shopping player Grofers India Pvt Ltd (GIPL).
Zomato said in a regulatory filing that the board has also approved the acquisition of 16.66 per cent Tech in food robotics and automation firm, Mukund Foods Pvt Ltd, for a value of USD 5 million.
The company, which last year invested USD 100 million (Rs 745 crore) to acquire around 9 per cent stake in Grofers, said its board has been mandated to decide the key terms of the loan and execute certain documents. Delegated authority to its senior management. at a future date.
“The interest rate for the loan with tenor of more than 1 year will be 12 per cent or more per annum. This loan will support the capital requirements of GIPL in the near term and is in line with our stated intention to invest in the next 2 years. USD 400 million in cash in accelerated commerce in India,” the filing said.
Zomato further said that it will acquire 16.66 per cent share capital of Mukunda Foods on a fully diluted basis through subscription of 13,289 Series B1 compulsorily convertible preference shares and ten equity shares for a cash consideration equivalent to USD 5 million .
“Our investment will help Mukund Foods to expand rapidly, drive down restaurant food prices, increase margins and enhance customer delight,” it added.
Zomato said that the proposed investment is subject to the fulfillment of certain conventional conditions and other terms and conditions agreed upon under the investment agreement executed between the parties.
Mukunda is a food robotics company that designs and manufactures small robotic equipment to automate food preparation for restaurants, enabling them to grow rapidly while maintaining consistency in food quality and customer experience across multiple outlets . The company also helps restaurants become more efficient by increasing manpower cost, wastage and kitchen throughput.
Read more: Zomato delivery boy dies after bike collides with drunk constable’s car in Delhi