Zomato, a prominent player in the foodtech industry, has announced the dissolution of its subsidiary in Slovakia effective July 12, 2024, marking the completion of liquidation proceedings that began ten months ago. This decision was disclosed in a recent stock exchange filing.
Last September, the Gurugram-based company initiated liquidation proceedings for its Slovakian subsidiary, citing its non-operational status and minimal financial impact on Zomato’s overall turnover and revenue. The subsidiary, with a net worth of Rs 2.2 lakh, had negligible active operations, contributing less than 0.0001% to the company’s total net worth.
Zomato’s strategic focus on its core market of India prompted the withdrawal from smaller markets, including Slovakia, as part of broader plans announced in 2016 to scale back operations in several countries, such as the US, the UK, Brazil, Italy, and Slovakia. Notably, Italy and Slovakia were identified as non-focus markets due to the absence of local operational teams.
In addition to Slovakia, Zomato also liquidated subsidiaries in Portugal and New Zealand last year. The company’s quarterly earnings report highlighted its intention to establish an ESOP pool comprising 18.26 crore employee stock options, representing approximately 2% of its fully diluted outstanding share capital.
During the financial year 2023-24, Zomato’s standalone revenue from operations saw a significant 71% year-on-year increase to Rs 12,114 crore, driven by strong performances in food delivery and quick commerce segments. The company reported a net profit of Rs 351 crore for FY24. Moreover, its quick commerce division achieved positive adjusted EBITDA in March and aims to expand its services, targeting up to 1,000 stores by March 2025.
