Zomato approves acquisition of 16.66% stake in Mukunda

16 Mar 2022 , 01:37 PM

The board of directors of Zomato Limited at its meeting held on March 15, 2022 has approved acquisition by way of subscription of 13,289 Series B1 compulsorily convertible preference shares and 10 equity shares collectively aggregating to 16.66% of the share capital of Mukunda Foods Private Limited on a fully diluted basis, for an aggregate cash consideration of INR equivalent of US$5 million (Proposed Investment).

At around 1.40 pm, Zomato Ltd is currently trading at Rs76.15 per piece down by Rs0.45 or 0.59% from its previous closing of Rs76.60 per piec on the BSE.

Mukunda is a food robotics company that designs and manufactures small robotic equipment to automate food preparation for restaurants. Their products enable restaurants to scale rapidly while maintaining consistency in food quality and customer expe1ience across multiple outlets. Mukunda also helps restaurants to become more efficient by reducing manpower cost, wastage and increase kitchen throughput.

Our investment will help Mukunda Foods scale faster, help reduce restaurant food prices, expand margins, and enhance customer delight.

The Proposed Investment is subject to fulfillment of certain customary conditions precedent and other te1ms and conditions agreed under the investment agreement executed between the parties; and

The board also approved a grant of loan up to INR equivalent of US$150 million to Grofers India Private Limited (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 1 year. This loan will support the capital requirements of GIPL in the near term and is in line with our stated intent of investing up to $400 million cash in quick commerce in India over the next 2 years.