Thursday, February 29, 2024

Zomato exits almost all foreign markets, liquidates 10 overseas subisidiaries in less a year

With the announcement of the liquidation of subsidiaries Zomato Vietnam Company Ltd and Poland’s Gastronauci- the online food delivery platform has now made an exit from ten international markets in less than a year.

This week, Zomato informed stock exchanges that it has initiated the dissolution of its step-down subsidiaries located in Vietnam and Poland to cut costs.

Notably, the Gurugram-based food delivery platform has liquidated ten of its subsidiaries since March 2023.

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The restaurant aggregator bid adieu to 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 i 2023.

Previously, Zomato pulled the plug on its international businesses in Canada, the US, the Phillippines, the UK, Qatar, Lebanon and Singapore.

Now, after exiting almost all major overseas market, the company is still operational in Indonesia, Sri Lanka, and UAE.

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According to Zomato, the liquidation of its subsidiary would not impact the operations of the company as it did not have active business operations in foreign markets.

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

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Zomato posted profits for two consecutive quarters in FY2024. The food aggregator reported a net profit of 36 crore in the September quarter and a 2 crore profit in the June quarter. Revenue from operations grew 71% to touch 2,848 crore, driven by an order volume surge in Q2FY2024.

Total expenses of the company increased to 3,039 crore in the quarter ended September, up from 2,092 a year ago period.

Yesterday, the shares of Zomato hit a 52-week high. It closed at 133.50 up 2.89%. Now, the company’s 52-week high is 134.35. The stock had a trading volume of 2,968,442 shares on the BSE.

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Published: 06 Jan 2024, 01:55 PM IST

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