• Mon. Jul 22nd, 2024

Zomato Exits Most Foreign Markets; Shuts Down 10 Subsidiaries Within A Year | Companies News

Byusanewscart.com

Jan 7, 2024
Zomato Exits Most Foreign Markets; Shuts Down 10 Subsidiaries Within A Year | Companies News

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New Delhi: Zomato’s recent declaration of liquidating subsidiaries like Zomato Vietnam Company Ltd and Poland’s Gastronauci signifies its departure from ten global markets within a year.

Zomato in a communication to stock exchanges this week informed that it has initiated the dissolution process for its step-down subsidiaries in Vietnam and Poland as a cost-cutting measure. The Gurugram-based food delivery platform has liquidated ten subsidiaries since March 2023. (Read More: Robert Kiyosaki, ‘Rich Dad, Poor Dad’ Author Reveals He Is Under $1.2 Billion Debt)

Zomato bid farewell to various entities, including Zomato Chile SpA, PT Zomato Media Indonesia (PTZMI), Zomato New Zealand Media Pvt Ltd, Zomato Australia Pty Ltd, Zomato Media Portugal Unipessoal Lda, Zomato Ireland Limited – Jordan, Czech Republic’s Lunchtime, and Zomato Slovakia, all in the year 2023.

Zomato discontinued its operations in Canada, the US, the Philippines, the UK, Qatar, Lebanon, and Singapore. Despite withdrawing from most major global markets, the company remains active in Indonesia, Sri Lanka, and the UAE.

Zomato stated that the liquidation of its subsidiary would not affect the company’s operations since it wasn’t actively engaged in business operations of foreign markets. 

In Zomato’s FY2023 annual report, it listed 16 direct subsidiaries, 12 step-down subsidiaries, and one associate company, such as Zomato Payments Pvt Ltd (acquired in 2021), Blinkit Commerce (acquired in 2022), and Zomato Financial Services (acquired on 25 Feb 2022), among others.

In FY2024, Zomato’s financial performance has been strong posting profits for two consecutive quarters. In the September quarter, they reported a net profit of Rs. 36 crore, and in the June quarter, a Rs. 2 crore profit. Revenue from operations increased by 71% to Rs. 2,848 crore. The current 52-week high for the company’s stock stands at ₹134.35, and it recorded a trading volume of 2,968,442 shares on the BSE.

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