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On 17 April 2023, Coca-Cola India acquired a 15% stake (on a fully diluted basis) in Hashtag Loyalty, which is an affiliate of Jubilant FoodWorks. Following this transaction, the company's stake in Hashtag has reduced from 35% to 29.75% (on a fully diluted basis). Hashtag has raised the capital at a pre-money valuation of Rs 104.68 crore.
To formalize the transaction, Jubilant Foodworks has signed a shareholders agreement with Hashtag, the new investor, and other existing investors of Hashtag. The company confirmed that there have been no adverse changes in its rights, which were detailed in its 27 October 2021 stock exchange disclosure during the initial stake acquisition. This is not a related party transaction.
Hashtag Loyalty is a company that helps other businesses increase customer loyalty, retention and revenue. They do this by collecting first-party customer data through touchpoints like loyalty programs, feedback systems or reservation systems, and then using that information to better understand and engage with their customers.
In October 2021, Jubilant Foodworks purchased a 35% stake in Hashtag Loyalty for approximately Rs 24.75 crore. The acquisition was part of Jubilant Foodworks' strategy to invest in promising startups and emerging businesses, and to build a technology-powered multi-brand and multi-country food business.
Jubilant FoodWorks (JFL) is India's largest foodservice company and is part of the Jubilant Bhartia group. Incorporated in 1995, JFL holds the exclusive master franchise rights from Domino's Pizza Inc. to develop and operate the Domino's Pizza brand in India, Sri Lanka, Bangladesh, and Nepal. In India, JFL has a strong and extensive network of 1,760 Domino's restaurants across 387 cities.
The company's standalone net profit tumbled 35.5% to Rs 88.58 crore despite of 10.32% rise in revenue from operations to Rs 1,316.64 crore in Q3 FY23 over Q3 FY22.
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