Zomato begins liquidation of Portugal-based subsidiary
Food delivery firm Zomato clarified that the dissolution will not affect turnover or revenue, according to its filing with the stock exchanges.
has begun liquidation proceedings for its wholly-owned subsidiary, Zomato Media (ZM) Portugal, stating it is not a material subsidiary and has no active business operations.
Further, it clarified that ZM Portugal's net worth is Rs 12 million ($0.14 million), and its dissolution will not affect turnover or revenue, according to its filing with the BSE.
The liquidation is expected to complete within a month, subject to approvals.
Likewise, ZM Indonesia has a net worth of Rs 15 million ($0.18 million) and its liquidation is expected to be completed within 12 months, subject to requisite approvals.
In total, Zomato is set to liquidate five subsidiaries, including those in Indonesia, New Zealand, Australia, Jordan, and Portugal.
According to a research note by brokerage firm JM Financial, Zomato's market share in the food delivery segment stood at 55% in 2022, up marginally from 53% in 2021.
In the fourth quarter of FY23, Zomato posted a 70% increase in revenue to Rs 2,056 crore on the back of its B2B supplies business, Hyperpure. Losses for the period declined to Rs 188.2 crore, down 47% from the year-ago period.
The company recently temporarily suspended onboarding new users on its Unified Payments Interface (UPI) vertical, Zomato UPI, two months after launching the new feature. It plans to enrol new users by the end of the month after incorporating feedback.
