Spice Money ropes in Sonu Sood as brand ambassador in return for minority equity stake
DiGiSPICETechnologies on Monday said its subsidiary Spice Money has roped in Bollywood actor Sonu Sood as its brand ambassador in return for a minority equity stake.
"Spice Money Ltd (formerly known as Spice Digital Limited) (SML), a wholly-owned subsidiary of the company... has appointed Sonu Sood as the brand ambassador through Sood Infomatics (SIL) for a cash consideration for a period of three years," Digispice Technologies said in a regulatory filing.
As per the agreement, SIL has agreed to subscribe 8,69,030 Class B equity shares of Rs 10 each of Spice Money Ltd (approximately 2 percent of the present share capital of SML), subject to the necessary approval(s) as required for issue and allotment of the Class B equity shares, the company added.
Digispice Technologies said these Class B equity shares will be initially partly paid up and will become fully paid-up over a period of three years as per the agreed schedule.
On successful performance by SIL and Sood of their obligations and upon the achievement of the milestones and delivery of the deliverables and upon the issue of further Class B equity shares as agreed between all parties, the final stake of SIL in Spice Money may result in ownership of Class B equity shares of up to approximately 5 percent of its present paid-up share capital.
Class B shares typically have lower dividend priority than Class A shares and fewer voting rights.
Spice Money, in a statement, said it has joined hands with Sonu Sood to achieve their mutual vision to digitally and financially empower one crore rural entrepreneurs.
Sood has been actively helping people in need in the remotest corners of the country since the outbreak of the COVID-19 pandemic.
"As part of the association, Sonu Sood will own equity stake in the company and has been appointed as a non-executive advisory board member. Spice Money will ideate collectively with Sood to design new initiatives and products that will bridge the divide between rural and urban India," the company said.
Actor, producer, and humanitarian Sonu Sood
Spice Money said it will also enable select existing programmes developed by Sood during the lockdown, to be made available on the Spice Money platform.
As a non-executive advisory board member, Sood will contribute to building the network of entrepreneurs, while encouraging financial inclusion and digital empowerment in rural India.
Consequently, Spice Money shall cease to be a wholly-owned subsidiary of the company but will continue to be a subsidiary company, Digispice Technologies said.