Zomato to grant up to $150 million of loan to Grofers India

Food aggregator Zomato on Tuesday said that its board of directors has approved grant of loan up to $150 million to Grofers India Private Limited (GIPL) in one or more tranches.
 
In an exchange filing, Zomato said its board has delegated the authority to the senior management of the company to decide the key terms of the loan and execute the definitive documents at a future date.
 
"The interest rate for the loan will be 12 per cent p.a. or higher with a tenor of not more than 1 year. 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," it said.
 
GIPL is the parent company of quick commerce start-up Blinkit. Zomato already holds over 9 per cent stake in the company.
 
Earlier today, Business Today reported that Blinkit, earlier known as Grofers, has signed a merger deal with Zomato. The deal will value Blinkit between $700-800 million, stripping down the unicorn valuation that the online grocery delivery firm gained last year when it raised capital from Zomato.

Also Read: Blinkit to merge with Zomato in an all-stock deal, to be valued at $700-800 mn
 
Besides, Zomato's board also approved acquisition of 16.66 per cent of the share capital of Mukunda Foods Private Limited for an aggregate cash consideration of $5 million.
 
The acquisition will be done by way of subscription of 13,289 Series B1 compulsorily convertible preference shares and 10 equity shares of Mukunda.
 
Mukunda is a food robotics company that designs and manufactures smart robotic equipment to automate food preparation for restaurants. Its products enable restaurants to scale rapidly while maintaining consistency in food quality and customer experience across multiple outlets. It also helps restaurants to become more efficient by reducing manpower cost, wastage and increase kitchen throughput, the filing added.
 
"Our investment will help Mukunda Foods scale faster, help reduce restaurant food prices, expand margins, and enhance customer delight," Zomato said.
 
The proposed investment is subject to fulfilment of certain customary conditions precedent and other terms and conditions. Zomato expects the acquisition to be complete in seven days.
 
Mukunda had a turnover of Rs 3.25 crore in financial year 2020-21, Rs 10.30 crore in FY20 and Rs 3.19 crore in FY19.

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