The popular food delivering company, Zomato has also authorized a loan of $150 million in one or more tranches to Blinkit, which was formerly known as Grofers. The delegated authority of the company's senior management will late decide the key feature and the loan agreement.
The date of releasing the complete documentation of the same is yet to be released. The loan will have an annual interest rate of 12 percent on average and a term of no more than one year. This loan will help Blinkit meet its short-term capital needs and is consistent with the stated intention of investing up to $400 million in cash in the emerging commerce in India over the span of the next 2 years.
Zomato also announced its acquisition of Mukunda Foods Private Limited on Tuesday. It must be noted that Mukunda foods manufacture and design smart robotic equipment to digitize food preparation practices in hotels and restaurants.
The purchased stake is 16.66%. On the NSE, Zomato stock closed more than 3% lower at 76.80 per share on Tuesday.
The products of Mukunda Private Limited help the restaurants scale their business while maintaining the quality of food and customer satisfaction in numerous outlets.
Mukunda also brings efficiency to the restaurants by reducing waste and labor costs and increasing kitchen bandwidth. Zomato stated in a filing that its investment in the Mukunda Private Limited will help it in scaling faster. It will also contribute to reducing food prices of the restaurants, improving customer satisfaction, and also in expanding margins.
The company also said that the acquisition will be made through subscribing 13,289 series Bl compulsorily convertible preferred stock, and a total of 10 equity shares. These will account for the total of 16.66 percent of Mukunda Foods Pvt Ltd's shareholding on a fully diluted basis.
Zomato has also authorized a loan of $150 million in one or more tranches to Blinkit, which was formerly known as Grofers. The delegated authority of the company's senior management will late decide the key feature and the loan agreement.
