Shares of Domino's pizza chain operator Jubilant FoodWorks rose as much as 3.5 per cent to hit an intraday high of Rs 447.40 on the BSE after it informed exchanges that Coca-Cola India Private Limited purchased stake in its associate company Hashtag Loyalty Private Limited.
Coca-Cola India Private Limited has acquired 15 per cent stake in Hashtag Loyalty Private Limited and Jubilant FoodWorks' stake in Hashtag has come down from 35 per cent to 29.75 per cent.
"Hashtag has raised the capital at a pre-money valuation of Rs. 104.68 crore," Jubilant FoodWorks said in a stock exchange filing.
"As part of the transaction, the Company has entered into a Shareholders Agreement dated April 17, 2023 with Hashtag, New Investor and other existing investors of Hashtag and there is no adversarial change in the rights granted to the Company as enunciated in the stock exchange disclosure by the Company dated October 27, 2021, at the time of acquisition of the initial stake," Jubilant FoodWorks added.
Advertisement
Hashtag has launched Thrive, a service for restaurants that helps them grow their online presence and is in direct competition with food delivery apps such as Zomato and Swiggy.
"Thrive provides restaurants with a modern ordering solution for restaurants. build microsites for individual restaurants, multi-outlets, and even larger F&B corporations, from which customers can place their orders directly, instead of opting for an aggregator platform. The defining factor is that the commission we charge restaurants per order is as low as 3 per cent, in comparison to the 25-30 per cent charged by the duopoly in the space of food delivery," according to Hashtag.
Advertisement
"This collaboration between Thrive and Coca-Cola India Pvt. Ltd. will ensure an improved experience for consumers as they can order beverages of their choice along with their favourite meal from Thrive’s partner restaurants. This presents a great opportunity for both Thrive and Coca-Cola India Pvt. Ltd. given the online food delivery market's projected rapid growth and contribution to the total food services industry," Hashtag added.
As of 11:50 am, Jubilant FoodWorks shares traded 2.68 per cent higher at Rs 443.9, outperforming the Sensex which was down 0.24 per cent.
