Zomato, the popular food delivery platform, has announced the liquidation of its subsidiaries in Vietnam and Poland. This decision comes as part of the company’s ongoing efforts to cut costs and streamline its operations.
With the closure of Zomato Vietnam Company Ltd and Gastronauci, Zomato has now exited a total of ten international markets in less than a year. The company has been liquidating its subsidiaries since March 2023, bidding farewell to entities in countries such as Chile, Indonesia, New Zealand, Australia, Portugal, Jordan, the Czech Republic, and Slovakia.
While Zomato has pulled out of most major overseas markets, it is still operational in Indonesia, Sri Lanka, and the United Arab Emirates. The company has stated that the closure of its subsidiaries will not impact its operations as these entities did not have active business operations in foreign markets.
Zomato has been making headlines recently for its impressive financial performance. The company reported profits for two consecutive quarters in FY2024, with a net profit of ₹36 crore in the September quarter and ₹2 crore in the June quarter. Revenue from operations also experienced significant growth, reaching ₹2,848 crore due to a surge in order volume in Q2FY2024. However, total expenses for the company increased to ₹3,039 crore in the quarter ended September.
The news of Zomato’s subsidiaries’ liquidation coincided with the company’s shares hitting a 52-week high. The stock closed at ₹133.50, up 2.89%, marking a new milestone for the company.
As Zomato continues to navigate the competitive food delivery market, its focus on optimizing operations and reducing costs will be crucial for long-term success. While the company has exited several international markets, its presence in key markets such as Indonesia, Sri Lanka, and the UAE indicates a strategic approach to expansion and growth.