Zomato grants $150-million loan to Blinkit
The move is in line with our stated intent of investing up to $400 million cash in quick-commerce: Zomato
Foodtech platform Zomato informed stock-exchanges on Tuesday that it will lend $150 million to Grofers India in one or more tranches with a tenor of up to one year at an interest rate of 12 percent or more.
Interestingly, sources in the know reveal that and have signed a term sheet for an all-stock merger, valuing the quick commerce startup in the range of $700-750 million.
owns and runs quick-commerce platform Blinkit. Last week, it raised $100 million from Zomato through convertible debt instruments. Zomato owns close to 9 percent stake in Blinkit since August 2021.
"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," according to the Zomato statement.
Zomato has also taken a 16.67 percent stake in Mukunda Foods, a food robotics company that designs and manufactures smart robotic equipment to automate food preparation for restaurants, for $5 million.
"Mukunda also helps restaurants to become more efficient by reducing manpower cost, wastage, and increase kitchen throughput," according to the Zomato stock-exchange filing.
"Our investment will help Mukunda Foods scale faster, help reduce restaurant food prices, expand margins, and enhance customer delight," the exchange filing added.
Incorporated in 2012, Mukunda Foods clocked turnover of Rs 3.25 crore in financial year 2021, and Rs 10.3 crore in financial year 2020.
The Zomato investment is by way of subscription of 13,289 Series Bl compulsorily convertible preference shares and 10 equity shares collectively aggregating to 16.66 percent of the share capital of Mukunda Foods on a fully diluted basis, according to the stock-exchange filing.
Edited by Rajiv Bhuva