Food delivery firm Zomato has decided to shut down its Singapore and United Kingdom (UK)-based subsidiaries.
The move comes two months after the foodtech company listed on the Indian stock exchange, and a month after it filed for the dissolution of its US subsidiary — Zomato US — formerly known as UrbanSpoon.
Zomato had disclosed the same in its DRHP filed on July 6. Thus, the company stated that the dissolution of the subsidiaries will not affect the company’s revenue or turnover.
Why desolution?
The company has noted that both these entities — Singapore-based Zomato Media Private Limited (ZMPL) and UK-based Zomato UK Limited (ZUL) — did not have any active business operations and their strike-off would not have any impact on the company’s turnover or revenue.
According to the company’s spokesperson, this is a part of Zomato’s “clean up drive”. Last month, Zomato divested its stake in its US-based subsidiary Nextable Inc., for $100,000.
Both ZUL and ZMPL had no contribution to the company’s net worth and revenue in the last financial year, the filing read. ZUL’s network was INR 1.64 Mn while ZMPL was worth INR 0.65 Mn.
About Zomato
Founded by Deepinder Goyal, Pankaj Chaddah and Gunjan Patidar in 2008, the restaurant aggregator and food delivery company has 16 active subsidiaries.
Major names include UberEATS India, Feeding India, Zomato Trace, MenuMania, TongueStun Food Network, Cibando among others.
Recently, it also incorporated a wholly-owned subsidiary – Zomato Payments Private Limited – to provide payment services and technology services for its users.
Zomato after listing
The foodtech platform, which got publicly listed on July 23 at INR 116, touched a high of INR 147.30 minutes after the market opening.
It currently has a market capitalization of INR 1.03 Lakh Cr and the share closed at INR 136.25 on the National Stock Exchange (NSE) on September 1.
Zomato’s revenue from operations increased from INR 591.9 Cr in the quarter ended March 2021 to INR 757.9 Cr in June 2021 quarter on a standalone basis, growing 28% QoQ.
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