Coca-cola has acquired a minority stake of 15% in an online food ordering platform, Thrive.
This investment would be Coca-cola’s first investment in a startup in the Indian market.
Read on to find out all the details!
Coca-cola To Invest in Food Delivery Platform Thrive
Thrive, a Mumbai-based online food ordering and delivery platform is another competitor to food delivery platforms, like Swiggy and Zomato. The platform has partnered with over 5000 restaurants to deliver food across India.
The decision by Coca-Cola to purchase this minority ownership would be significant for both the beverage giant and the Indian start-up sector because the business typically enters into exclusive global collaborations like those with McDonald’s and other well-known brands.
The funding will probably give Thrive the boost it needs to compete with Zomato and Prosus-backed Swiggy’s duopoly in the food delivery market. It comes at a key time when rival restaurant groups criticize the duopoly’s high commissions and pressure tactics.
By utilizing Coca-Cola India’s broad reach to dining establishments and customers, Thrive will be able to increase its scale. In keeping with its goal to better meet the discovery requirements of the restaurants it services, it is also developing a new discovery platform, according to Thrive.
Jubilant’s Ownership Decreased from 35% to 29.75%
Jubilant Foodworks, the company that owns Domino’s, is Thrive’s strategic backer. Jubilant’s ownership has decreased from 35% to 29.75% as a result of Coca-Cola India’s investment, according to an exchange filing.
As per the filing, “Hashtag Loyalty Private Limited (‘Hashtag’), an associate of Jubilant FoodWorks Limited, has entered into a Securities Subscription Agreement dated April 17, 2023, with Coca-Cola India Private Limited pursuant to which the New Investor has acquired a 15% stake in Hashtag. Accordingly, the Company’s stake in Hashtag has reduced from 35% to 29.75% on a fully diluted basis.”
Jubilant invested Rs 24.74 crore in Hashtag in October 2021, acquiring a 35% share in the company. The company said in a previous statement that it was seeking to make strategic investments in “promising startups and emerging businesses” in order to create a multi-brand, multi-country food business that was made possible by technology.
