The company, which invested $100 million (Rs 745 crore) last year to acquire a roughly 9 percent stake in Grofers, said its board of directors has delegated authority to senior management to negotiate key terms of the loan. and execute the final documents. at a future date.

Online food delivery platform Zomato said on Tuesday that the board has approved a loan of up to USD 150 million (about Rs 1,145 crore) to digital supermarket player, Grofers India Pvt Ltd (GIPL).

The board of directors also approved the acquisition of 16.66 percent in food robotics and automation company, Mukunda Foods Pvt Ltd, for a total cash consideration of rupee equivalent of USD 5 million, Zomato said in a regulatory filing.

The company, which invested $100 million (Rs 745 crore) last year to acquire a roughly 9 percent stake in Grofers, said its board of directors has delegated authority to senior management to negotiate key terms of the loan. and execute the final documents. at a future date.

“The interest on the loan will be 12 percent per annum or higher with a term of no more than 1 year. This loan will support GIPL’s capital requirements in the near term and is consistent with our stated intention to invest up to $400 million in cash over the next 2 years in high-speed trading in India,” the filing stated.

Zomato further said it will acquire 16.66% of the share capital of Mukunda Foods on a fully diluted basis by subscribing to 13,289 Series B1 mandatorily convertible preferred stock and ten common stock for a total cash consideration of rupee equivalent of USD 5 million.

“Our investment will help Mukunda Foods scale faster, reduce food prices in restaurants, increase margins and increase customer satisfaction,” it added.

The proposed investment is subject to the fulfillment of certain customary conditions precedent and other conditions agreed upon under the investment agreement entered into between the parties, Zomato said.

Mukunda is a food robotics company that designs and manufactures small robotic equipment to automate food preparation for restaurants, enabling them to scale quickly while maintaining consistency in food quality and customer experience across multiple points of sale, it added.

The company also helps restaurants become more efficient by reducing staff costs, waste and kitchen throughput.


This post Zomato Provides USD 150 Million Loan to Grofers India and Acquires Stake in Mukunda Foods was original published at “https://www.financialexpress.com/industry/zomato-to-provide-usd-150-mn-loan-to-grofers-india-buy-stake-in-mukunda-foods/2462149/”

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