Grocery delivery company Zomato has decided to close its Singapore and United Kingdom (UK) subsidiaries. The food technology company announced its closure in a statement on the stock exchange on Sept. 1.
The net worth of Singapore-based Zomato Media Private Limited (ZMPL) is Rs 6.5 as the statement shows.
As part of its “clean up”, grocery suppliers close international subsidiaries that do not contribute to business,
The company found that none of the subsidiaries were actively trading and their termination would have no impact on the company’s sales or revenue.
Zomato NSE 8.83% shuts down its two overseas subsidiaries – Zomato UK Limited (ZUK) in the UK and Zomato Media Private Limited (ZMPL) in Singapore – according to an exchange filed by the company on Wednesday.
As part of the purge, the grocery supplier closed an international subsidiary that had not contributed to its business since being listed on the Indian stock exchange in July.
The company said in a statement that its subsidiaries in the UK and Singapore were irrelevant to its business and closing them would not affect its sales or revenue. He added that he announced in his IPO prospectus that ZMPL and ZUL are not in active business. In August, Zomato closed its US subsidiary and sold its stake in Nextable Inc for $100,000.
Zomato once saw its international operations as a key area for growth, but overseas sales made up a fraction of the sales. According to the quarterly sales report submitted in August, the company earned 806 kroner from operating income of 844.4 rupees from India, 31 kroner from UAE and the rest from other markets.