Zomato acquires 16.66% stake of Mukunda Foods for $5 mil.

The board of Zomato on 15 March 2022 approved the acquisition by the way of subscription of 13,289 Series B1 compulsorily convertible preference shares and 10 equity shares collectively aggregating to 16.66% stake of Mukunda Foods worth $5 million.

Mukunda is a food robotics company that designs and manufactures smart robotic equipment to automate food preparation for restaurants. Their products enable restaurants to scale rapidly while maintaining consistency in food quality and customer experience across multiple outlets.

Mukunda also helps restaurants to become more efficient by reducing manpower cost, wastage and increase kitchen throughput. Zomato's investment will help Mukunda Foods scale faster, help reduce restaurant food prices, expand margins, and enhance customer delight, as per the company's press statement.

In addition to the above, the board has also granted a loan of up to $150 million to Grofers India (GIPL) in one or more tranches and delegated the authority to the senior management of the company to decide the key terms of the loan and execute the definitive documents at a future date. The interest rate for the loan will be 12% p.a. or higher with a tenor of not more than one year. This loan will support the capital requirements of GIPL in the near term and is in line with its intent of investing up to $400 million cash in quick commerce in India over the next two years.

On a consolidated basis, the food delivery company reported net loss of Rs 63.20 crore Rs 63.20 crore in Q3 December 2021 as against net loss of Rs 352.60 crore in Q3 December 2020. Net sales rose 82.47% to Rs 1,112 crore in Q3 December 2021 over Q3 December 2020.

Shares of Zomato slipped 0.07% to Rs 76.55 on BSE. Zomato's technology platform connects customers, restaurant partners and delivery partners, serving their multiple needs. It also operates a one-stop procurement solution, Hyperpure, which supplies high quality ingredients and kitchen products to restaurant partners.

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