Zomato said that its step down subsidiary Zomato Slovakia has been “dissolved” effective July 12
Zomato announced in September last year that its step down subsidiary in Slovakia had begun the liquidation process
Zomato has been shuttering down a number of overseas subsidiaries over the last year or so to focus on its India operations
Foodtech major Zomato
has liquidated its Slovakian subsidiary, ten years after its launch.
In an exchange filing on Friday (July 12), Zomato said that its step down subsidiary Zomato Slovakia has been “dissolved” effective today.
Zomato announced in September last year that it had begun the liquidation process for its Slovakian subsidiary.
At the time, the company said that the dissolution of the subsidiary would have no impact on its turnover.
In its red herring prospectus (RHP) filed with SEBI in July 2021, the company said that Zomato Slovakia did not have any active business operations.
The food delivery giant had then pegged the Slovakian arm’s net worth at around INR 2.2 Lakh.
Zomato made its entry into the Slovakian market in 2014 after buying online restaurant discovery guide Obedovat.sk for $1 Mn as part of its overseas expansion plans.
It is pertinent to note that Zomato has been shuttering down a number of overseas subsidiaries to focus on its India operations. Last year, the company liquidated or announced liquidation of subsidiaries in Indonesia, New Zealand, Australia, Jordan, Portugal and Czech Republic.
Prior to that, Zomato also discontinued rendering its services to Talabat in the UAE.
On the other hand, it has been doubling down on its presence in India and has unveiled a slew of new offerings and pilots recently, including an all-electric large order fleet, a ‘Pure Veg’ fleet, last-mile delivery for office goers inside corporate parks, as well as priority deliveries in parts of Bengaluru and Mumbai.
Earlier today, Zomato launched a new feature that will enable customers to remove their past orders from the app’s history.
The developments come at a time when Zomato has been improving its profitability every quarter, after first posting a profit after tax (PAT) of INR 2 Cr in the first quarter of FY24. The company’s profit stood at INR 175 Cr in Q4 FY24.
In line with the improvement in profitability, the overall market sentiment around the stock has turned positive.
Shares of Zomato reached a fresh all-time high at INR 223.40 during the intraday trading on Friday. However, the stock shed some of the gains and closed today’s trading session at INR 222.45 apiece, up 2.42% from the previous close.
