Zomato exits 10 international markets in less than year
Zomato has announced that it is dissolving its subsidiaries in Vietnam and Poland. The liquidation of subsidiaries Zomato Vietnam Company Limited and Poland's Gastronauci marks the online food delivery platform's exit from 10 international markets since March 2023 as part of its cost-cutting strategy. Previously, the Gurugram-based company withdrew from Canada, the United States, the Philippines, the United Kingdom, Qatar, Lebanon, and Singapore.
Subsidiaries liquidated and remaining operational markets
In 2023 alone, the company liquidated several other international subsidiaries, including Zomato Chile SpA, PT Zomato Media Indonesia (PTZMI), and Zomato New Zealand Media Private Limited. Zomato Australia Proprietary Limited, Zomato Media Portugal Unipessoal Lda, Zomato Ireland Limited - Jordan, Czech Republic's Lunchtime, and Zomato Slovakia were also on the list last year. Despite these exits, Zomato continues to operate in Indonesia, Sri Lanka, and the United Arab Emirates (UAE), per reports.
Liquidation of subsidiaries won't impact operations
Zomato has taken an exit from almost all major overseas markets. However, the company clarified that the liquidation of its subsidiaries would not affect its operations because it did not have active business operations in those foreign markets.
Zomato's financial performance remains strong in FY2024
Zomato's financial performance has been strong in FY2024, with the food aggregator posting profits for two consecutive quarters. The company reported a net profit of Rs. 36cr in the September quarter and a Rs. 2 crore profit in the June quarter. Revenue from operations increased by 71% to Rs. 2,848cr. Total expenses rose to Rs. 3,039cr in the quarter ended September. Recently, Zomato's shares reached a 52-week high, to Rs. 134.35 (up 2.89%), with a trading volume of 2,968,442 shares.
