[Update] Zomato Acquires 16.6% Stake In Food Robotics Startup Mukunda For $5 Mn

Update | March 24, 2022, 6:15 PM

Robotics startup, Mukunda Foods, has raised $5 Mn in a strategic funding round from delivery giant, Zomato. With this, the startup’s post-money valuation has now risen to $30 Mn. 

The startup will use the funding to expand its reach across Quick Service Restaurants (QSRs), Cloud Kitchens and Fine Dine segments. The investment will also be used to scale the startup’s food and beverages business.

Speaking on the announcement, Mukunda CEO and cofounder, Eshwar K Vikas, said, “Zomato and Mukunda Foods share the vision of reaching every restaurant and helping them grow. While Zomato does it by helping restaurants reach more customers & increasing their revenues, we help the F&B brands increase their profitability & grow fast with our kitchen technologies. This common interest will help the F&B industry greatly.”

Zomato further added, “Our Investment will help Mukunda Foods scale Faster, help reduce restaurant food prices, expand margins and enhance customer delight.”

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Original Story | Published on March 16, 2022, 09:07 AM

Amid talks of a merger with Blinkit, Zomato’s board, on March 15, approved the acquisition of 16.66% stake in robotics startups, Mukunda Foods, for $5 Mn.

The foodtech giant made the announcement in a regulatory filing to the National Stock Exchange.

Zomato said, “Our investment will help Mukunda Foods scale faster, help reduce restaurant food prices, expand margins, and enhance customer delight.”.

The move will enable the listed company to help restaurants to become more efficient by reducing manpower cost and wastage as well as to increase kitchen throughput.

Zomato expects the acquisition to be completed in seven days.

Founded in 2012 by Eshwar K Vikas and Sudeep Sabat, Mukunda is a food robotics company that designs and manufactures smart robotic equipment to automate food preparation for restaurants. The company claims that its products enable restaurants to scale rapidly while maintaining consistency in food quality and customer experience across multiple outlets.

The startup had previously raised an undisclosed amount of funding from Ncubate Capital Partners back in 2018. It had also previously raised INR 1 Cr in funding from IAN back in 2013. In total, the startup has so far raised INR 40 Cr in funding.  

The startup’s offerings – DosaMatic, Eco Fryer, RiCo and Wokie – allow users to make dosas, rice, noodles and curries without any human intervention. 

Despite COVID wreaking havoc across the Indian economy, Mukunda registered a turnover of INR 3.25 Cr in the financial year 2020-21. 

According to a report, the global food robotics market size was estimated to be around $1.9 Bn in 2020 and is projected to reach the $4 Bn mark by 2026 at a CAGR of 13.1%.

Another report states that the Indian industrial robotics market witnessed the installation of as many as 5,000 units in 2019 and is estimated to reach 11,760 units by 2025, expanding at a CAGR of 14.41%.

This came on the same day as IISc Bengaluru-backed AI and Robotics Technology Park announced the launch of a $100 Mn venture fund for AI and robotics startups. In February this year, Reliance acquired a 54% stake in robotics startup, Addverb Technologies, for $132 Mn.