Zomato to form NBFC, invest in UrbanPiper and AdOnMo

The board of directors of Zomato Limited ('the Board' and 'the Company', respectively) at its meeting held on January 27, 2022 approved the investments by the Company in the following Indian companies ("Proposed Investments"):

- Acquisition by way of subscription of 11,214 (Eleven Thousand Two Hundred Fourteen) compulsorily convertible preference shares and 10 (Ten) equity shares collectively aggregating to 19.48% of the share capital of Adonmo Private Limited, for an aggregate cash consideration of INR 112,20,85, 728/- (Indian Rupees One Hundred and Twelve Crore Twenty Lakh Eighty Five Thousand Seven Hundred Twenty Eight Only).

- Acquisition by way of subscription of 1,259 (One Thousand Two Hundred Fifty Nine) compulsorily convertible preference shares and 1 (One) equity shares collectively aggregating to 5% of the share capital of UrbanPiper Technology Private Limited, for an aggregate cash consideration of INR 37,38,77,280/- (Indian Rupees Thirty Seven Crore Thirty Eight Lakh Seventy Seven Thousand Two Hundred and Eighty Only).

Pursuant to the approval of the Board, the Company has finalized and executed the relevant agreements for the Proposed Investments. The Proposed Investments are each subject to fulfilment of ce1tain customary conditions precedent and other terms and conditions agreed under the investment agreements.

The Board has also approved incorporation of wholly owned subsidiary of the Company as Non-Banking Finance Company.

UrbanPiper: The company has signed definitive documents for investing ~$5 million in UrbanPiper Teclmology Private Limited ("UrbanPiper") for a ~5% stake as pa11 of a larger ~$24 million round.

UrbanPiper is a B2B software platform that acts like a "middle layer" between restaurants and food ordering and delivery players and enables restaurants to seamlessly integrate with multiple players through a single digital interface. ~80% of restaurants still use legacy systems or manual processes leading to delay in order flow and errors in order processing. UrbanPiper solves this problem for restaurants through teclmology helping more restaurants become "food-delivery ready". It cutTently processes ~12 million orders a month at 23,000+ restaurant locations in the country.

With our investment:, we hope to fuel UrbanPiper's penetration in the restaurant industry.

AdOnMo*: We have signed definitive documents for investing ~$15 million in Adomno Private Limited ("AdOnMo") for a ~19% stake.

AdOnMo is an ad-tech company that is taking targeted digital advertising beyond personal devices to outdoor digital screens. Their proprietary technology enables cloud-connected digital screens with contextual and targeted adve1tising capabilities. Outside of online marketing (web / mobile app), this is the only medium where ads can be served (a) digitally and in real time, (b) customized and targeted for hyperlocal audiences.

Growth in AdOnMo's platform will help our food ordering and delivery business leverage new digital avenues for customer acquisition.

Both UrbanPiper and AdOnMo investments are synergistic to our core business and will help accelerate growth of these companies which will help in filling impo11ant gaps in the food ordering and delivery ecosystem in India.

Shares of Zomato Ltd was last trading in BSE at Rs. 90.50 as compared to the previous close of Rs. 100.50. The total number of shares traded during the day was 8025227 in over 78149 trades.

The stock hit an intraday high of Rs. 98.00 and intraday low of 90.45. The net turnover during the day was Rs. 735467636.00.

Source : Equity Bulls

Keywords

Zomato Investment AdOnMo UrbanPiper Subsidiary NBFC