Food delivery company Zomato on Tuesday announced that its subsidiary Zomato Financial Services Limited (ZFSL) has decided to voluntarily withdraw its application to operate as a non-banking financial company (NBFC). The food tech company says it no longer plans to pursue a lending business. Zomato Financial Services was added in February 2022.

Following the announcement, Zomato shares rose 2.2% to a 52-week high of ₹213.80 apiece in early morning trade on BSE.

According to a statement issued in a BSE filing, the food delivery company explained that the decision was taken by the board of ZFSL.

“We wish to inform the stock exchanges that the Board of Directors of ZFSL, a wholly-owned subsidiary of Zomato Limited, in its meeting to be held today i.e. July 2, 2024, has voluntarily accepted the application submitted on April 29, 2022. has decided to withdraw.Reserve Bank of India (RBI) to obtain a certificate of registration for undertaking the business of a Non-Banking Financial Company (Type II NBFC-ND) as we further lend/credit business. do not wish to continue,” Zomato said in a statement. Filing

The company added that the decision would not have a “significant impact” on its revenue or operations, highlighting that the disclosure was voluntary. Zomato was reportedly in talks with various non-banking financial companies (NBFCs) to provide working capital loans to its affiliated restaurants.

Earlier this year, another subsidiary of Zomato, Zomato Payment Private Limited (ZPPL), also voluntarily accepted its authority to act as an online payment aggregator. ZPPL, which was established in 2021, was intended to act as a payment aggregator and issuer of prepaid payment instruments.

In May, food delivery company Zomato reported a net profit of ₹ 175 crore for the quarter ended March 31, 2024, compared to a loss of ₹ 188 crore in the same quarter last year. Income from operations grew 73% year-on-year to ₹3,562 crore for the fourth quarter, up from ₹2,056 crore in the fourth quarter of FY23. Sequentially, profit rose 27% to ₹ 138 crore in the December quarter of FY24, while revenue grew 8.3%.

For the full fiscal year 2023-24, Zomato posted a profit of ₹351 crore, marking an improvement from a loss of ₹971 crore in FY23. The revenue growth was mainly driven by the performance of its food delivery service and instant commerce platform Blinkit. Zomato’s food delivery business recorded revenue of ₹1,739 crore in Q4 FY24, as against ₹1,172 crore in the same period last year. Meanwhile, the instant commerce business generated revenue of ₹769 crore during the quarter, up from ₹363 crore in Q4 of FY23.

“One of the key growth vectors for us right now is store expansion. In Q4FY24, we added 75 new stores taking our total store count to 526. For comparison, this is more than which we added in the previous three. Including this cost of expansion, we turned EBITDA positive in the month of March 2025,” says Albandar Dhandsa, CEO, Blunkett.



Source link