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Zomato to establish NBFC, invests in two more startups

Zomato Ltd, an online food delivery aggregator, said in a BSE filing on Friday that it will establish a wholly-owned non-banking finance company (NBFC) and invest in two more startups. 

The announcement comes when the Company’s market capitalization has dropped. 

Zomato, whose stock has dropped more than 35% this month, announced a ₹112.21 crore investment in AdOnMo Pvt Ltd, an advertising technology firm, for a 19.48% stake. The online food aggregator would also invest ₹37.39 crores in UrbanPiper Technology Pvt Ltd, a software services firm, for a 5% stake. According to the filing, Zomato intends to establish the NBFC with a proposed authorized share capital of ₹10 crores.

UrbanPiper is a B2B software platform that allows restaurants to integrate multiple players via a single digital interface. According to Zomato, UrbanPiper processes about 12 million orders per month at over 23,000 restaurant locations across the country. In October 2019, VCCircle reported that UrbanPiper had raised $7.5 million in a Series A round of funding sponsored by Tiger Global Management and Sequoia Capital. According to the filing, the Company had a turnover of ₹6.34 crore in March 2021. 

AdOnMo is an advertising technology business that focuses on digital advertising beyond personal devices to outdoor digital screens, Zomato said. According to Zomato, the Company would use AdOnMo’s platform to acquire customers. The Company has a turnover of ₹3.27 crore as of March 31, 2021.

“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,” Zomato said.

“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 fulfillment of certain customary conditions precedent and other terms and conditions agreed under the investment agreements,” added Zomato.

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BRL Editor
BRL Editor
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