India’s leading food delivery service provider Zomato has received the board approval to grant a loan of up to $150 million to Grofers India Private Limited (GIPL). The loan would be provided in one or more tranches said the company in a regulatory filing on Tuesday.

Zomato board has also delegated the authority to the senior management to decide the key terms of the loan and execute the definitive documents at a future date. According to the company, the interest rate for the loan will be 12 per cent per annum or higher with a tenure of not more than 1 year.

“This loan will support the capital requirements of GIPL in the near term and is in line with our stated intent of investing up to $400 million cash in quick commerce in India over the next 2 years,” Zomato said in the filing.

Founded in December 2013, GIPL is the parent company of quick commerce start-up Blinkit which was formerly known as Grofers. As per media, the report Zomato holds over 9 per cent stake in Blinkit.

Apart from the loan to Grofers, Zomato’s board also approved the acquisition of 16.66 per cent of the share capital of Mukunda Foods Private Limited. The company will pay an aggregate cash consideration of $5 million, added the filing.

Mukunda is a food robotics company that designs and manufactures smart robotic equipment to automate food preparation for restaurants. The company’s products enable restaurants to scale rapidly while maintaining consistency in food quality and customer experience across multiple outlets. It also helps restaurants to become more efficient by reducing manpower cost, wastage and increasing kitchen throughput, the filing added.

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

The acquisition will be done by way of a subscription of 13,289 Series B1 compulsorily convertible preference shares and 10 equity shares of Mukunda.