Food delivery platform Zomato announced that its board at its meeting held on Thursday has approved the investments in two Indian companies – Adonmo Private Limited and UrbanPiper Technology Private Limited.
The company will buy a 19.48% stake in ad-tech company Adonmo for an aggregate cash consideration of ₹112 crore whereas it will purchase 5% equity in B2B software platform UrbanPiper for ₹37.38 crore.
“Both UrbanPiper and Adonmo investments are synergistic to our core business and will help accelerate growth of these companies which will help in filling important gaps in the food ordering and delivery ecosystem in India,” Zomato said in an exchange filing.
UrbanPiper is a B2B software platform that acts as a ‘middle layer’ between restaurants and food ordering and delivery players. With its investment, Zomato said it hopes to fuel UrbanPiper’s penetration in the restaurant industry.
Adonmo is an ad-tech company that is taking targeted digital advertising beyond personal devices to outdoor digital screens. Growth in AdOnMo’s platform will help our food ordering and delivery business leverage new digital avenues for customer acquisition, Zomato added.
The proposed investments are each subject to fulfilment of certain customary conditions precedent and other terms and conditions agreed under the investment agreements.
Zomato further informed the exchanges that the board in its meeting held also approved incorporation of wholly owned subsidiary of the company as Non- Banking Finance Company (NBFC).