Zomato, a leading player in the foodtech sector, has completed the liquidation of its subsidiaries in Vietnam and the Czech Republic.
In an exchange filing on Wednesday, Zomato announced that its subsidiary, Zomato Vietnam Company Ltd (ZVCL), has been liquidated with effect from February 2, 2024.
In another exchange filing, Zomato stated that its Czech subsidiary, Lunchtime.cz s.r.o, has also been liquidated, effective from February 6, 2024.
Continue Exploring: Zomato to liquidate Czech subsidiary Lunchtime as part of global downsizing strategy
This development comes approximately a month after the company initiated the liquidation process for its Vietnamese subsidiary.
Continue Exploring: Zomato announces liquidation of Vietnamese and Polish subsidiaries as global restructuring continues
In an exchange filing on January 4, the company clarified that ZVCL is not considered a significant subsidiary, and its dissolution will not impact the company’s revenue. ZVCL’s net worth was reported to be INR 36 Lakh.
The liquidation of the two businesses comes at a time when the startup is aggressively closing down its international subsidiaries. Last year, it shut down businesses in multiple countries, including Indonesia, Jordan, and Slovakia.
Continue Exploring: Zomato’s Indonesian subsidiary PTZMI starts liquidation process, no significant impact expected on turnover
The startup is also currently in the process of liquidating another step-down subsidiary, Polish Gastronauci SP. Z.O.O.
It’s worth mentioning that the foodtech major has aggressively cut down its costs in the last two years to achieve, and subsequently sustain, profitability.
Earlier today, Zomato reported a consolidated net profit of INR 138 Cr in the December quarter of 2023. This marks a significant increase from the INR 36 Cr profit reported in the September quarter, following a net loss of INR 136.6 Cr in Q3 FY23.
Continue Exploring: Zomato reports third consecutive profitable quarter with INR 138 Cr PAT in Q3 FY24
Maintaining its robust performance, Blinkit, the company’s quick-commerce vertical, recorded its second consecutive quarter of positive contribution in Q3.
Continue Exploring: Blinkit continues growth trajectory with second consecutive quarter of positive contribution
Before releasing its Q3 results, Zomato additionally disclosed that it had allocated 10.88 Cr equity shares through its various employee stock option plans (ESOPs).
Zomato’s shares concluded today’s trading session up by 2.42% at INR 144 on the BSE.
Continue Exploring: Zomato allots 10.88 Crore equity shares for employee stock options ahead of Q3 FY24 earnings
