Zomato begins liquidation of its Vietnam-based step-down subsidiary

Food delivery major Zomato has initiated the process of liquidation for its Vietnam business, the company said in a regulatory filing on Thursday.

The company added that the step-down subsidiary does not have any active business operation, and its liquidation would not impact the operations of the company.

'It may be further noted that Zomato Vietnam Company Limited (ZVCL) is not a material subsidiary of the company, and the dissolution of ZVCL will not affect the turnover/revenue of the company,' the filing read.

Over the past year, Zomato has been exiting from international markets, in a bid to cut costs. In 2023 alone, the company closed its Portugal, Chile, Czech, Indonesia, Jordan, and Philippines subsidiaries.

The company recently posted its second consecutive quarter of consolidated profits at Rs 36 crore in the second quarter (Q2) of financial year 2023-24 (FY24), up from Rs 2 crore a quarter ago.

Zomato’s revenue from operations rose 71 per cent year-on-year (Y-o-Y) to Rs 2,848 crore in Q2, up from Rs 1,661 a year ago. It had reported a revenue of Rs 2,416 in the previous quarter.

Total expenses for the Gurugram-based food delivery firm increased to Rs 3,039 crore in the quarter ended September, up from Rs 2,612 a quarter ago and Rs 2,092 a year ago.