Zomato Begins Indonesia Subsidiary Liquidation Process Following Closure Announcement In Early 2023

Foodtech major Zomato’s Indonesia subsidiary has started the liquidation process, the company informed exchanges on Wednesday (July 5).

“We wish to submit that PT Zomato Media Indonesia (“PTZMI”), wholly owned subsidiary of the Company situated in Indonesia has initiated the process of liquidation on July 03, 2023,” the company said in the filing.

As disclosed in its red herring prospectus dated July 6, 2021, and prospectus dated July 19, 2021, the Indonesia subsidiary does not have any active business operations, the company noted.

“It may be further noted that PTZMI is not a material subsidiary of the Company and the liquidation of same will not affect the turnover/revenue of the company,” Zomato added further.

PTZMI’s net worth was stated as INR 1.5 Cr, contributing 0.01% to Zomato’s net worth.
The liquidation process is expected to be completed within the next 12 months, subject to required approvals, the Gurugram-based listed startup said.

Zomato launched its business in Indonesia almost a decade ago, in 2013. In early February, Zomato’s websites for Indonesia started displaying a message stating that the foodtech had shut operations there.

Earlier this year, Zomato said it had liquidated Zomato Ireland Limited – Jordan, a step-down subsidiary based in Jordan. Zomato Jordan, as the company was called, did not have any active business, as disclosed by the company in its red herring prospectus in 2021.

The company has been looking to scale back its operations in countries not generating enough business to sustain.It has also introduced many innovations lately to stay relevant to customers, as well as restaurant partners through new features such as multi-restaurant cart, Zomato Food Trends among others.

Zomato’s net loss narrowed 48% year-on-year (YoY) to INR 187.6 Cr in the March quarter of the financial year 2022-23 (FY23). The Deepinder Goyal-led startup had reported a net loss of INR 359.7 Cr in Q4 FY22.

It posted an operating revenue of INR 2,056 Cr, which jumped over 70% from INR 1,211.8 Cr reported in the last year’s quarter.

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