Zomato Ltd, a food delivery company, announced the purchase of a 16.66 percent stake in Mukunda Foods Pvt Ltd for $5 million on Tuesday. Mukunda Foods is a food robotics company that designs and manufactures small robotic equipment for restaurants to automate food preparation.
Zomato stated that it remains bullish on quick commerce and plans to invest an additional $400 million in the space over the next two years when it announced its December quarter results.
“We are extremely optimistic about the quick commerce category’s product-market fit, unit economics, and growth trajectory. It reminds us of the food delivery category a few years ago, when many platforms competed for a large and growing market, but only the few that provided exceptional experiences to their customers survived,” Zomato said at the time.
“We are growing more confident in our decision to invest behind market leadership with healthy unit economics here.” As a result, we are raising the upper limit of our potential investments in this category to $400 million in cash over the next two years,” the company said.
The stock has dropped more than 41% in the last three months as a result of a sell-off in tech stocks and, more recently, increased volatility as a result of Russia’s invasion of Ukraine.