On Friday, January 28, food delivery platform Zomato announced to set up a non-banking finance company (NBFC). The company has also invested in two startups according to its filing to exchanges.
Zomato will invest Rs 112.21 crore in an advertising technology startup AdOnMo Pvt Ltd for 19.48% stake & Rs 37.39 crore in software services company UrbanPiper Technology Pvt Ltd for 5% stake. According to the filing by Zomato, the company plans to set up the NBFC with a share capital of Rs 10 crore. The name of the NBFC is yet to be finalized.
Currently, as the shares of Zomato are falling, these investments are expected to likely zoom up the shares. “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. The shares of other new-age technology companies including Nykaa, Policy Bazaar, and Paytm have also fallen 15-35%.
Earlier in a blog post founder of Zomato, Deepinder Goyal informed that the company has set aside $1 billion to invest in several startups over the next two years.