Food services company Jubilant Foodworks Ltd (JFL), operator of Domino’s Pizza and Dunkin Donuts, has entered into a share purchase agreement to acquire 35% stake in Hashtag Loyalty for Rs 24.75 crore, the company said in an exchange filing. Hashtag Loyalty runs direct ordering platform Thrive, and provides a platform for brands to order online directly. It also provides an omni-channel customer engagement and marketing automation platform to restaurant owners.
“This investment reflects the company’s intent of making strategic investments in promising start-ups and emerging businesses and is in line with the stated goal of building a multi-brand and multi-country food business powered by technology,” JFL said in a stock exchange filing.
Analysts said the acquisition indicates how established restaurant chains are building their own online ordering verticals. Restaurant chains repeatedly alleged that aggregators charge steep commissions and mask data.
“While a minority investment, this is a significant step as Thrive is an alternate platform for food aggregators like Swiggy and Zomato,” Edelweiss Securities executive vice president Abneesh Roy said.
Hashtag Loyalty started as a technology upgrade to paper-based loyalty punch cards business, and later evolved into an omni channel customer engagement and marketing automation platform. It is presently being used by over a thousand businesses in 30 cities
