Coca-Cola India has purchased a 15% stake in Hashtag Loyalty

Jubilant FoodWorks Ltd (JFL), the company that operates Domino's Pizza in India, announced on April 17th that Coca-Cola India Private Ltd has acquired a 15% stake in its associate company, Hashtag Loyalty Private Ltd, for INR 104.68 crore. As a result, JFL's stake in Hashtag has decreased from 35% to 29.75% on a fully diluted basis. Hashtag raised the capital at a pre-money valuation of INR 104.68 crore, as confirmed in an exchange filing.

JFL also stated that as part of the transaction, they have entered into a shareholders agreement with Hashtag, the new investor, and existing investors of Hashtag, and that there has been no adverse change in the rights granted to JFL, as previously disclosed in their stock exchange disclosure on October 27, 2021, when they initially acquired the stake. JFL clarified that this transaction is not a related party transaction.

JFL is the exclusive master franchise for developing and operating the Domino's Pizza brand in India, Sri Lanka, Bangladesh, and Nepal. They also hold franchise rights for the American fast-food chain 'Popeyes' in India. JFL recently opened four new stores, bringing the total store count to 12 in Bengaluru.

In terms of financials, JFL reported a decline of 39.66% in consolidated net profit, amounting to INR 80.36 crore for the third quarter ending on December 31, 2022. This is compared to a consolidated net profit of INR 133.19 crore in the same quarter of the previous fiscal year, as reported by CNBC TV 18.