Zomato liquidates Slovakia subsidiary to deepen focus on India market
Zomato had announced in 2016 that it will roll back operations in nine overseas markets, including the US, Italy and Slovakia.
Food delivery companyhas initiated liquidation proceedings for its subsidiary in Slovakia, it announced in a stock exchange filing on September 15.
The subsidiary—which had a net worth of Rs 2.2 lakh, according to filings with BSE—was not operational and hence its liquidation has no material impact on the company's turnover or revenue, Zomato said.
"It may be further noted that Zomato Slovakia is not a material subsidiary of the Company, and the
dissolution of Zomato Slovakia will not affect the turnover/revenue of the Company," the company added. The subsidiary did not have any active operations and contributed less than 0.0001% to Zomato's overall net worth, as per filings.
The process is expected to be completed within 9-12 months subject to requisite approvals.
The move is part of Zomato's plan to pull back from minor markets to draw focus on India. It announced in 2016 that it would roll back operations in nine countries, including the US, the UK, Brazil, Italy, and Slovakia. It later clarified that Italy and Slovakia were not focus markets since ground teams were not deployed in the two regions.
Earlier this year, the Deepinder Goyal-led firm liquidated subsidiaries in Portugal and New Zealand, according to filings with the stock exchange.
The company recorded a first-time profit of Rs 2 crore in the first quarter of FY24 from a loss of Rs 186 crore in the same quarter last year. The Deepinder Goyal-led firm reached profitability much earlier than its previous guidance where it said it expects to hit the milestone by Q2 FY24.
The numbers brought some much-needed cheer to its investors and the bourses with many founders and investors that YourStory spoke to being convinced that Zomato's stellar numbers will change the lens through which foodtech and quick delivery startups are viewed and convince more VCs to back them.
Edited by Kanishk Singh