Zomato on Friday announced is investment into two tech companies. The online food aggregator said it will invest Rs 112.20 Cr in Ad tech firm Adonmo Pvt Ltd for a 19.8% stake and Rs 37.38 Cr in B2B software platform UrbanPiper Technologies for 5% stake.
The stake acquisition in UrbanPiper Technologies is a part of the larger $24 million funding round. The company confirmed these developments in an exchange filing. The investments will be subject to certain customary conditions as well as other terms and conditions agreed under the investment agreements.
While Urban Piper Technologies works like an interface between restaurants and food ordering and delivery players and enables restaurants to integrate with multiple players via a digital interface, AdOnMo enables targeted, real-time advertisements on cloud-connected digital screens.
“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.
Additionally, the Zomato board has also approved the incorporation of a wholly-owned NBFC subsidiary. The NBFC will allow Zomato to extend credit to its stakeholders such as restaurants, delivery partners as well as customers. Interestingly, Bace Fund LP, a venture fund where Zomato founder Deepinder Goyal has invested $100K, is an AdOnMo investor. In the regulatory filing, Zomato has clarified that Goyal’s investment of $100, 000 in Bace Fund LP is an “insignificant portion of the fund”.