Zomato, the food delivery company, has initiated liquidation proceedings for its subsidiary in Slovakia.
The subsidiary—which had a net worth of Rs 2.2 lakh, according to filings with BSE—was not operational and hence its liquidation has no material impact on the company’s turnover or revenue, Zomato said.
“It may be further noted that Zomato Slovakia is not a material subsidiary of the Company, and the dissolution of Zomato Slovakia will not affect the turnover/revenue of the Company,” the company added. The subsidiary did not have any active operations and contributed less than 0.0001% to Zomato’s overall net worth, as per filings.
The process is expected to conclude within 9-12 months, aligning with Zomato’s strategy to focus on the Indian market by withdrawing from minor markets. Zomato had previously announced the rollback of operations in multiple countries, including Slovakia. This move follows Zomato’s liquidation of subsidiaries in Portugal and New Zealand earlier this year.
In Q1 FY24, Zomato recorded its first-ever profit of Rs 2 crore, a significant improvement from a loss of Rs 186 crore in the same quarter last year, exceeding its previous profitability guidance.
