Zomato’s parent Eternal announced that its step-down subsidiary in the Netherlands, Zomato Netherlands, has initiated its liquidation process
Zomato Netherlands’ turnover was nil in FY24, while its net worth stood at INR 32 Lakh. The liquidation of the subsidiary is expected to be completed within one year
With this, Zomato has effectively shut down nearly all of its international subsidiaries
Marking its first disclosure post adopting the name Eternal on the bourses, Zomato’s parent Eternal announced that its step-down subsidiary in the Netherlands, Zomato Netherlands, has initiated its liquidation process.
In an exchange filing, the company said that Zomato Netherlands is not a material subsidiary of the company and its dissolution will not affect the revenue of the company.
“Further, as disclosed in our red herring prospectus dated July 6, 2021 and prospectus dated July 19, 2021, Zomato Netherlands does not have any active business operation,” the filing read.
Zomato Netherlands’ turnover was nil in FY24, while its net worth stood at INR 32 Lakh. The liquidation of the subsidiary is expected to be completed within one year.
Zomato’s Liquidation Spree
The foodtech major has shut a number of its international subsidiaries over the past few years. Here’s a timeline of the foodtech major’s liquidation spree outside India:
- Aug 2021: Dissolution of US subsidiary, Zomato USA LLC
- Sept 2021: Shutdown Singapore and UK-based subsidiaries
- Nov 2021: Exited Lebanon
- Jan 2022: Deregisficed Zoto South Africa Proprietary Ltd
- Oct 2022: Dissolved Qatar business
- Nov 2022: Discontinued food delivery services in the UAE
- Feb 2023: Exited Netherlands and Philippines
- Mar 2023: Initiated liquidation of Zomato Ireland and Jordan
- Jun 2023: Dissolved Zomato Australia Pty Ltd
- Jul 2023: Initiated liquidation process for Zomato subsidiaries in Indonesia and Portugal
- Sep 2023: Began liquidation process in Czech Republic and liquidated Chile subsidiary
- Jan 2024: Dissolution process initiated in Vietnam and Poland
- Jul 2024: Liquidated Slovakian subsidiary
However, its bid to take food delivery international didn’t exactly work out and it decided to shut most of the international subsidiaries.
In 2022, the company’s founder Deepinder Goyal, during an interview with CNBC TV-18, said that business explorations outside of India didn’t play out as expected. Goyal said that Zomato would continue to focus on its India business.
“International business does not fit into our roadmap anymore. Not at all,” he said then.
Eternal’s India Bets Pays Off
Zomato’s decision to focus on India has worked wonders, with the company reporting its maiden profitable year in FY24. It posted a consolidated net profit of INR 351 Cr in FY24and has registered three profitable quarters in FY25.
Besides its bread-and-butter food delivery, Zomato parent Eternal is a major player in the quick commerce market with Blinkit, has a strong presence in B2B grocery deliveries with Hyperpure, and is now focussing on growing its newest vertical District.
Further, the company broadened its horizons from B2C market to B2B with the launch of its AI-native, no-code customer support platform ‘Nugget’ earlier this year. Nugget provides AI agents ranging from conversational AI chatbots to co-pilots, which help in handling complex queries and streamlining support.
Shares of Eternal ended yesterday’s trading session 1.74% lower at INR 211.50 on the BSE.
