VST Tillers Tractors to invest USD 1.6 million in start-up Zimeno

VST Tillers Tractors Ltd on Wednesday said it will invest a further USD 1.6 million (over Rs 10 crore) in California-based start-up Zimeno Inc which is into the development of electric autonomous tractors.

A meeting of the board of directors held on November 9, 2021, has further decided to invest USD 1.6 million in Series B preferred stock of Zimeno Inc, a company incorporated in the State of California, USA, VST Tillers Tractors Ltd said in a regulatory filing.

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Earlier in March this year, the company had invested USD 15,00,000 (Rs 11.07 crore) in Series A preferred stock of Zimeno Inc.

On the rationale of the latest investment, VST Tillers Tractors said, "The company is holding about 2 per cent shares in Zimeno Inc before this investment. Now, the company will further invest in Series B preferred stocks to retain the same shareholding percentage in the investee company."

The investment is intended for development and access to electric tractor technology, it added.

The acquisition is expected on or before December 31, 2021, the company said.

Incorporated on December 29, 2017, Zimeno Inc is yet to start commercial production, the filing added.