Zomato has shut two of its overseas subsidiaries — Zomato UK Limited (ZUK) in the UK and Zomato Media Private Limited (ZMPL) in Singapore .As part of its “cleaning-up” exercise, the food delivery firm has been closing international subsidiaries that don’t contribute to its business since it was listed on Indian exchanges in July.
Zomato deliberated that it’s UK and Singapore subsidiaries were not material to its business and their dissolution would not affect its turnover or revenue. It added that it had disclosed in its IPO prospectus that both ZMPL and ZUL didn’t have any active business operations. In August, Zomato closed its US subsidiary and sold its stake in Nextable Inc for $100,000.
Earlier Zomato had viewed its international operations as a key growth area, but revenues from overseas comprise a tiny portion of its earnings. According to its quarterly earnings report, the company earned Rs 806 crore of its Rs 844.4 crore operational revenue from India, Rs 31 crore from the UAE, and the rest from other markets.