Zomato has invested a total of INR 149.6 crores in two companies – “Adonmo & UrbanPiper”. Through its BSE filing, the company informed the exchange about its proposed investments in these companies.
The board of Zomato has approved an investment of INR 112.20 crores in Adonmo, an advertising technology company, for a stake of 19.48%. The proposed investment is strategic in nature as Adonmo is a cloud-based ad-tech company with more than 200 brands trusting it for outdoor advertisements. The company uses its cloud infrastructure to display real time advertisements through digital boards placed on taxis, airports, malls etc. The advertisers are provided with analytical tools and real time data of the campaigns to track the penetration and viewership across the targeted region.
Zomato has also decided to invest a sum of 37.4 crores in UrbanPiper, a B2B software platform that acts like a middle layer between the restaurants and food delivery aggregators, for a stake of 5%. The company offers range of services from integrating orders from all the [approx. 15-20] aggregators, inventory management systems, satellite tracking and delivery agent assignments to controlling catalogues which are displayed on the aggregators platform. It also helps the client with analytical tools resulting in better decision making. The company has renowned client base including Mc Donald’s, Subway, KFC, Eat.Fit, Box 8 etc.
The previous investments worth INR 750 crores in CureFit, INR 263 crores in Shiprocket and 175 crores in Magicpin were in line with the long-term view of strategically integrating these businesses with their core operations.
In November 2021, the company announced a platform to connect the restaurant partners to the potential investors. This would help the restaurants to expand and, in some cases, survive the pandemic. Following this development, the company has now applied for an NBFC license with an aim to finance the restaurants. This will be an addition to its already complex business model and can turnout out to be a double-edged sword if mishandled.