Foodtech firm Zomato’s subsidiary in Indonesia, PT Zomato Media Indonesia (PTZMI), has initiated the process of liquidation, according to a filing submitted by the company to the exchanges on Wednesday. Zomato clarified that PTZMI does not have any active business operations and is not a material subsidiary of the company. The liquidation process is expected to be completed within the next 12 months, subject to necessary approvals.
Zomato had launched its business in Indonesia back in 2013, but earlier this year, it was observed that Zomato’s websites for Indonesia were displaying a message indicating the closure of operations in the country. The liquidation of PTZMI follows Zomato’s previous liquidation of Zomato Ireland Limited – Jordan, a step-down subsidiary based in Jordan, earlier this year.
Zomato has been strategically scaling back its operations in countries where it is not generating sufficient business to sustain its operations. The company has also introduced various innovative features to stay relevant to its customers and restaurant partners, including the multi-restaurant cart and Zomato Food Trends.
In terms of financial performance, Zomato reported a 48% decrease in net loss year-on-year for the March quarter of the financial year 2022-23. The net loss narrowed to INR 187.6 crore compared to INR 359.7 crore in the same period last year. On the other hand, the company’s operating revenue witnessed significant growth, surging over 70% to INR 2,056 crore from INR 1,211.8 crore in the corresponding quarter of the previous year.
As Zomato continues to streamline its operations and focus on sustainable growth, the liquidation of its Indonesia subsidiary is part of the company’s efforts to optimize its business and resources.
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