Food Delivery Giant Zomato pulls the plug from South African operations
- ByTejika Bajaj | January 18, 2022
The food delivery giant Zomato has officially pulled the plug from its South African operations following its clean up exercise. The process began in the month of November last year and has officially been completed, thus shuttering the South African subsidiary effective this month.
According to the regulatory filings made with the Bombay Stock Exchange (BSE), Zomato has declared that the South African subsidiary namely Zomato South Africa Proprietary Ltd has been deregistered effective this month.
The company initiated the process of dissolution in November. In the filing made last year, Zomato said that Zomato SA didn’t have any active business operations and was not a material subsidiary, adding that the closure of Zomato SA would not affect its turnover or revenue.
The food delivery giant has pulled its plugs from multiple international locations including the subsidiaries located in Singapore and the UK. The US subsidiary has also been shut and further the stake has been sold to Nextable Inc.
Zomato executives have revealed that the closure of international operations is a part of the company’s ‘cleaning up exercise’ and shall have no profound implications on the revenue turnover of the startup. Currently only the UAE subsidiary of the startup is active. Zomato once saw its international operations as a key growth area, but overseas revenue has always comprised a tiny portion of its earnings.
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