Zomato’s two international subsidiaries shut down operations permanently, according to a disclosure submitted to Bombay Stock Exchange. The company revealed these subsidiaries to be Zomato UK Limited (ZUK) in the United Kingdom and Zomato Media Private Limited (ZMPL) in Singapore. The net worth of these companies was disclosed at Rs. 16.4 lakh and Rs. 6.5 lakh respectively.
Zomato reiterated that the entities did not have any active business operations as it had disclosed in its red herring prospectus in July this year. The subsidiaries made no contribution to the company’s turnover or the net worth in the last financial year.
“II may be noted further that ZMPL and ZUL are not material subsidiaries of the Company and the dissolution of ZMPL and ZUL will not affect the turnover/revenue of the Company,” read Zomato’s statement dated September 1, 2021.
The announcement comes in the wake of Zomato going public with the launch of its IPO two months ago. The listing has thrust its fundamentals such as revenue, profit, liabilities into the spotlight. Questions are being raised about the profitability of the company as the euphoria around India’s first unicorn startup listing on the bourses subsides gradually.
It must be noted that the Gurugram-based company posted a consolidated loss of ₹356.2 crore in the quarter which ended on June 30, 2021. The dissolution may help the company streamline its operations and retrain its focus on core businesses.
Wrapping up its US operations
Zomato had said two weeks ago that it was shutting down its US subsidiary— Zomato US LLC (ZUL) — to focus on its India operations. This subsidiary was earlier known as UrbanSpoon.
The restaurant aggregator and food delivery company said that ZUL’s contribution to Zomato’s turnover was nil whereas its contribution to the net worth stood at 0.07 percent.
Moreover, the company also dissolved its US table reservation business, NexTable, by entering into a stock purchase agreement with Justin Doshi, Thusith Desilva, and Robert Tyree for the sale of its stake at $100,000, as per Inc42.
The report added that NexTable had a turnover of Rs. 6.6 Cr and net worth of Rs. 1.5 Cr. It contributed 0.33% towards the turnover of Zomato and 0.02% of Zomato’s net worth.
Zomato’s other subsidiaries
Zomato has a presence in 23 countries where they provide services such as restaurant search.
The company has 16 subsidiaries which include:
- UberEATS India
- Feeding India,
- Zomato Trace,
- MenuMania,
- TongueStun Food Network,
- Cibando,
- Carthero Technologies,
- Menu Mania, among many others
The $13.3 billion-dollar company floated a payments subsidiary, Zomato Payments Private Limited, last month to provide financial services such as “payment and settlement system, payment gateway services, prepaid and postpaid payments instruments payment systems will be set up to offer payment services for all goods and services and utility bills through mobile phones”.
The Deepinder Goyal-led company also bought a 9.3 percent stake in Grofers at Rs 740 crore with plans to re-enter the grocery segment after exiting it in June last year.
Also read:
- Dunzo enters, Grofers speeds up, Swiggy expands, Zomato experiments, BigBasket holds on: Here’s what’s happening in the grocery delivery market
- Zomato gets CCI nod for Grofers investment, but says no plan on drawing any synergies yet
- What’s the human cost of having your meal delivered to you? Zomato, Swiggy delivery workers take to Twitter to answer this question
- NRAI’s suggested changes to e-commerce rules focus on food delivery platforms like Zomato and Swiggy
- Online food delivery platform Zomato to open Rs 9,375 crore IPO on July 14
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