Delhi NCR based food services company Jubilant Foodworks is acquiring 35% stake in customer relationship management (CRM) and automation startup Hashtag Loyalty for INR 24.75 Cr.
In a regulatory filing, Jubilant said that the acquisition is in tandem with its goal of building a multi-brand and multi-country food business powered by technology.
It further said that the investment reflects “the company’s intent of making strategic investments in promising start-ups and emerging businesses”.
Jubilant will acquire 25% stake in Hashtag Loyalty by subscribing 3,076 Compulsorily Convertible Series A Preference Shares at face value of INR 100 each.
It will acquire another 10% equity stake from existing shareholders of the Mumbai-based startup by purchasing 739 Compulsorily Convertible Seed Preference Shares at a face value of INR 10 each and 491 equity shares at face value of INR 10 each.
With the latest investment from the food services major, Hashtag Loyalty has so far raised $3.3 Mn in three rounds. Other investors in the CRM startup include Ahimsa Capital and thinQbate.
Founded in 2015, by Dhruv Dewan, Karan Chechani and Krishi Fagwani, Hashtag Loyalty Private Limited (HLPL) provides brands with online ordering systems to accept direct orders from customers. It also provides an enterprise-grade omnichannel customer engagement & marketing automation platform.
Its revenue in FY2020 stood at INR 1.13 Cr.
The stock acquisition is expected to complete in the next two months, the regulatory filing said.
A part of the Jubilant Bhartia Group, Jubilant Foodworks holds the master franchise rights for the international brands — Domino’s Pizza, Dunkin’ Donuts.
The market capitalisation of Jubilant Foodworks stands at over INR 49,000 Cr. During the quarter ended September, the company reported a revenue of INR 1,100.7 Cr, an increase of 36.6% on a year-on-year basis.