Food Delivery Partner Zomato Plans to Invest in Two Indian Tech Companies
Zomato, a food delivery service, is seeking to invest in Adonmo Private Limited and UrbanPiper Technology Private Limited, two Indian IT companies.
For an aggregate cash consideration of 112 crore, the company would purchase a 19.48 percent share in ad-tech firm Adonmo, while paying 37.38 crore for a five percent investment in B2B software platform UrbanPiper.
According to reports, both UrbanPiper and Adonmo's investments are synergistic with their core businesses and will help accelerate their growth by filling critical gaps in the food ordering and delivery ecosystem.
UrbanPiper is a business-to-business software platform that serves as a "middle layer" between eateries and food-ordering and delivery services. Zomato hopes that the investment will help UrbanPiper gain traction in the restaurant industry.
AdonMo is an ad-tech firm that is expanding targeted digital advertising beyond personal devices to include digital screens in public spaces.
According to studies, the growth of Adonmo's platform will assist the food ordering and delivery industry in leveraging new digital channels for consumer acquisition.
Each of the proposed investments is subject to the fulfilment of specified previous criteria as well as other terms and conditions stipulated in the investment agreements.
According to sources, the board of directors approved the incorporation of a totally owned subsidiary of the company as a Non-Banking Finance Company during its meeting (NBFC).
Zomato recently hit a low of 84, which was also the firm's 52-week low, but the stock has since recovered 19.5 percent. Over the last few days, the company's shares has been subjected to significant selling pressure as panic selling gripped global stock markets, particularly tech companies. Over the last five sessions, the Company's shares have dropped by a staggering 24 percent.
Read More News :