The foodtech major announced the liquidation of its Vietnamese subsidiary, Zomato Vietnam Company Limited (ZVCL), with effect from February 2, 2024
Zomato said it closed down its Czech Republic-based step down subsidiary, Lunchtime, on February 6, 2024
Earlier today, Zomato reported a consolidated profit after tax of INR 138 Cr in the December quarter of 2023
Foodtech major Zomato said it has completed the liquidation of its subsidiaries in Vietnam and Czech Republic.
In an exchange filing on Wednesday (February 7), Zomato said its step down subsidiary Zomato Vietnam Company Ltd (ZVCL) has been liquidated with effect from February 2, 2024.
In another exchange filing, the company said its Czech subsidiary, Lunchtime.cz s.r.o, has also been liquidated with effect from February 6, 2024.
This comes about a month after the company announced that it had initiated the liquidation process for its Vietnamese subsidiary.
In an exchange filing on January 4, the company said ZVCL is not a material subsidiary and its dissolution won’t affect the revenue of the company. ZVCL’s net worth was INR 36 Lakh.
The liquidation of the two businesses comes at a time when the startup is aggressively closing down its international subsidiaries. It shut down businesses in multiple countries, including Indonesia, Jordan, and Slovakia, last year.
The startup is also in the process of liquidating another step-down subsidiary, Polish Gastronauci SP. Z.O.O.
It is pertinent to note that the food tech major has aggressively cut down its costs in the last two years to achieve, and subsequently sustain, profitability.
Earlier today, Zomato reported a consolidated profit after tax of INR 138 Cr in the December quarter of 2023. Its profit stood at INR 36 Cr in the September quarter, while it posted a net loss of INR 136.6 Cr in Q3 FY23.
Continuing its strong performance, the company’s quick commerce vertical Blinkit reported its second consecutive contribution positive quarter in Q3.
Ahead of its Q3 results, Zomato also said that it has allotted 10.88 Cr equity shares under its multiple employee stock option plans (ESOPs).
Shares of Zomato ended today’s trading session 2.42% higher at INR 144 on the BSE.