India’s online food online platform and restaurant guide Zomato has recently announced that it will be tailing off the business of its subsidiary ZUL (Zomato USA LLC). The company claims that the contribution of this business to their revenue was nil.
This is followed by Zomato’s announcement to go public with a focus on sharpening the business in India. The market capitalization of the company crossed $13.3 billion after its public listing.
According to the company sources, the online food delivery platform which got listed in the public market last month only has delivered its billionth order in the third week of August 2021.
The food ordering app has a presence in 23 countries and claims that it will provide services such as café look in these places.
ZUL’s operations were withdrawn since August 17, 2021 and according to the company sources, the contribution to net worth of Zomato stands at 0.7 percent. The company added that the dissolution of ZUL will not affect the turnover.
Zomato has also recently sold its stake in NexTable, a US restaurant reservations platform for $100,000. The company in early august has also created Zomato Payments Pvt. Ltd., a financial payment organization for payment gateway and aggregator services.
Besides that, the company has also made an investment worth Rs 740 crores in Grofers, an on-demand grocery delivery service provider. This investment has been the company’s move to enter the express delivery space for essentials, taking on Instamart which is its rival Swiggy’s express grocery delivery platform.
The company’s earnings in the first quarter of fiscal 2021 were severely impacted due to COVID restrictions in the country. However, in the first quarter of the fiscal year 2022, the company witnessed a 37% sequential growth in its gross order value. Zomato’s revenue increased between April-June 2021 by 26% reaching Rs 1160 crores.
Zomato claims that its revenue growth was largely due to the growth of its core food delivery business which sustained despite the severe COVID second wave in India that started in April 2021.
Zomato is India’s leading food delivery company which was founded by Deepinder Goyal, Pankaj Chaddah, and Gaurav Gupta in 2008. The food ordering platform allows its users to order meals from restaurants and get them delivered to their doorstep. The company has over 55 million users spread across 23 countries and is backed by investors such as Teamsek, Tiger Global, Luxor, Fidelity, Kora, Steadview, and Ant Financial among others. The company’s latest funding was in February 2021 from a Venture series Unknown round. Recently, the company went public with India’s biggest Tech IPO.