Zomato has announced fresh investment into Mukunda Foods Private Limited (MFPL).
Key points to note:
- MFPL, founded in 2012 is into the design & development of automated kitchen food equipment.
- It’s current product portfolio includes – deep fryers, rice/ noodle/ pasta maker, chinese food, dosa maker and grilling machine. It’s products are more technologically advanced, automatic and intelligent compared to similar other traditional products.
- Target clients for these products is primarily the restaurant industry. Some of the clients mentioned on MFPL’s website include Swiggy, WOW Momo, ITC, Jubilant Foodworks and Chhayos.
- Zomato is investing $5 mn (approx Rs 38 cr) for 16.66% of the Company through the CCPS route.
- MFPL reported revenues of Rs 3.2 cr, Rs 10.3 cr and Rs 3.2 cr during FY 19, FY 20 and FY 21 respectively. Volatility in the revenues is attributed to Covid led disruptions to the restaurant industry.
The subject investment is synergetic to Zomato’s relationships with the restaurants. However, scale and size is small to draw any meaningful implications.
The segment though definitely seems interesting especially if it evolves into an end consumer products company.