Food delivery company Zomato has initiated liquidation proceedings for its subsidiary in Slovakia, it said in a stock exchange filing on September 15.
Zomato stated that the liquidation of its non-operational subsidiary, which was valued at Rs 2.2 lakh, will not have a significant impact on the company’s turnover or revenue. The subsidiary did not have any active operations and contributed less than 0.0001 per cent to Zomato’s overall net worth, as per filings.
The process is expected to be completed within 9 to 12 months subject to requisite approvals.
Zomato is focusing on its operations in India and has withdrawn from several minor markets. In 2016, it announced plans to scale back its operations in nine countries, including the US, the UK, Brazil, Italy, and Slovakia. However, it later clarified that Italy and Slovakia were not their primary markets as they didn’t have on-ground teams in those regions. This year, Zomato also liquidated its subsidiaries in Portugal and New Zealand.
Zomato made a profit of Rs 2 crore in the first quarter of FY24, compared to a loss of Rs 186 crore in the same quarter last year. This is earlier than their previous estimate of achieving profitability in Q2 FY24. The positive financial results have boosted investor confidence and could encourage more support for foodtech and quick delivery startups.