Zomato dissolves Slovakia subsidiary

Foodtech giant Zomatohas dissolved its subsidiary in Slovakia as of July 12, 2024, completing liquidation proceedings initiated 10 months ago, it said in a stock exchange filing on Friday.

Last September, the Gurugram-based company announced the initiation of liquidation proceedings for its subsidiary in the Slovak Republic.

Zomato had stated that the subsidiary, with a net worth of Rs 2.2 lakh, was non-operational, and therefore its liquidation would not materially impact the company’s turnover or revenue.

The subsidiary had no active operations and contributed less than 0.0001% to the footech major’s overall net worth.

As part of its strategy to concentrate on India, Zomato decided to withdraw from smaller markets. In 2016, it announced plans to scale back operations in nine countries, including the US, the UK, Brazil, Italy, and Slovakia. Zomato later clarified that Italy and Slovakia were not focus markets due to the absence of ground teams in these regions.

Last year, the Deepinder Goyal-led firm also liquidated subsidiaries in Portugal and New Zealand.

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Meanwhile, earlier this week, Zomato approved the allocation of 40 million Employee Stock Options (ESOPs) under its 2014 and 2021 plans, totalling Rs 892.19 crore in Zomato stocks.

In its quarterly earnings, the foodtech startup had announced plans to establish an ESOP pool consisting of 18.26 crore employee stock options, representing approximately 2% of its outstanding share capital on a fully diluted basis.

In the financial year 2023-24, Zomato’s standalone revenue from operations surged 71% year-on-year to Rs 12,114 crore, driven by robust performances in food delivery and quick commerce. It reported a net profit of Rs 351 crore in FY24.

The foodtech unicorn’s quick commerce division achieved positive adjusted EBITDA in March. It has been expanding its quick commerce services and plans to scale up to 1,000 stores by March 2025.