Zomato India has officially intimated the Bombay Stock Exchange (BSE) to shut down its subsidiary — Zomato Ireland Limited (Lebanon Branch). According to the BSE filings, the Ireland business will stop its operations from December 12, 2021.
The move comes shortly after the foodtech company was listed on the Indian stock exchange. Following its listing, Zomato has shut down three of its international subsidiaries — Zomato UK Limited (ZUL), Zomato Media Private Limited (ZMPL) and Zomato US — formerly known as UrbanSpoon.
In August, the company also shut down its US’ table reservation business — NexTable, which had a turnover of INR 6.6 Cr and a net worth of INR 1.5 Cr (as of March 2021). It also pulled a plug on its online grocery business post the acquisition of Grofers, and simultaneously shut down its health and fitness products — Nutraceuticals.
The company mentioned that the Lebanon Branch was not a material subsidiary of Zomato India.
According to the foodtech, Lebanon has been going through an economic crisis with a depreciating currency for the last two years. “The situation has become worse over the past few months and as a result, the business viability and future outlook for the region have deteriorated significantly,” the company mentioned. It added that the move was in line with its aims to focus on the Indian market.
The filing outlines that the Lebanon branch had become a loss-making startup in Q2 FY22. This closure is also in line with our broader strategy of focusing on our core India market, it said. In FY21, the branch had a turnover of INR 473.83 Mn, while in the next quarter ending June 2021, the branch only had a turnover of INR 46.80 Mn.
Founded by Deepinder Goyal, Pankaj Chaddah and Gunjan Patidar in 2008, the restaurant aggregator and food delivery company has 16 active subsidiaries. Major names include UberEATS India, Feeding India, Zomato Trace, MenuMania, TongueStun Food Network, Cibando among others.
Recently, it also incorporated a wholly-owned subsidiary – Zomato Payments Private Limited – to provide payment services and technology services for its users.
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