Zomato, the leading foodtech company, has successfully completed the liquidation process of its subsidiaries in Vietnam and the Czech Republic, according to recent exchange filings.
In an announcement made on Wednesday (February 7), Zomato revealed that its step-down subsidiary, Zomato Vietnam Company Ltd (ZVCL), concluded its liquidation process on February 2, 2024. Similarly, another subsidiary, Lunchtime.cz s.r.o, based in the Czech Republic, finalized its liquidation on February 6, 2024.
These developments follow Zomato's earlier decision to initiate the liquidation process for its Vietnamese subsidiary about a month ago. In its January 4 exchange filing, Zomato clarified that the dissolution of ZVCL, considered a non-material subsidiary, would not impact the company's revenue, given its net worth of INR 36 lakh.
The liquidation of these international subsidiaries aligns with Zomato's strategy to streamline its operations and optimize costs. Over the past year, the company has shuttered its businesses in several countries, including Indonesia, Jordan, and Slovakia. Additionally, Zomato is in the process of liquidating another step-down subsidiary, Polish Gastronauci SP. Z.O.O.
These cost-cutting measures have contributed to Zomato's financial performance, marked by sustained profitability. Today, Zomato reported a consolidated profit after tax of INR 138 crore for the December quarter of 2023, following a net loss of INR 136.6 crore in the same quarter of the previous fiscal year.
Moreover, Zomato's quick commerce vertical, Blinkit, achieved its second consecutive quarter of positive contribution in Q3, signaling continued growth and resilience in the company's operations.
In addition to its financial success, Zomato has allocated 10.88 crore equity shares under its various employee stock option plans (ESOPs), underscoring its commitment to rewarding and retaining talent.
With these positive developments, Zomato's shares closed 2.42% higher at INR 144 in today's trading session on the BSE.