Zomato India has officially dissolved and shut down its subsidiary in the US — Zomato USA LLC, a month after the food tech company listed on the stock exchange.
According to the filing, Zomato USA was not a material subsidiary of Zomato India and its dissolution will have no effect on the company’s revenue or turnover. Its contribution to the company’s net worth in the last financial year was 0.07%.
Zomato US — formerly known as Urbanspoon — offered restaurant guides in nearly 22 countries.
The filing comes days after Zomato shut down its US’ table reservation business — NexTable. Acquired in 2015 from founders Phong Luong, Thusith Desilva, and Robert Tyree, NexTable had a turnover of INR 6.6 Cr and net worth of INR 1.5 Cr (as of March 2021).
It contributed 0.33% to the startup’s consolidated revenue, and 0.02% to its net worth. In its notification, it attributed the business closure to the small market size of table reservation business.
Zomato now plans to focus on its India business. Yesterday, Zomato completed its investment of INR 740 Cr in egrocery firm Grofers — acquiring a 9.16% stake. Besides, it also acquired a stake in Hands on Trades Private Limited (HOTPL) — Singapore-based Grofers International owned private company.
The company, which went public on July 23, this year has a market capitalisation of INR 1.03 L Cr. Since the onset of covid, though the dine out business has been severely hit, foodtech platforms have seen a significant growth. From INR 3,310 in March this year, food tech platforms have grown 37% to INR 4,540 Cr in June 2021.