Home >Companies >News >Zomato to cease US ops, sharpen focus on India biz

New Delhi: Zomato said in a filing with the market regulators on Thursday that it will be winding down the business of its step-down subsidiary Zomato USA LLC (ZUL).

The Gurugram-based food technology platform said the contribution of the business to revenue was nil.

This follows Zomato’s announcement ahead of going public where the founders said that the focus will remain on growing the India business.

Zomato, which has a presence in 23 countries, said it will provide services such as restaurant search in these geographies.

The operations of ZUL have been discontinued since 17 August and the entity’s contribution to net worth of Zomato stood at 0.07%, according to the filings.

The company’s market capitalization crossed $13.3 billion after listing in the public markets.

Recently, Zomato also divested its stake in the US-based restaurant table booking platform NexTable for $100,000. Earlier this month Zomato set up a fintech payment entity called Zomato Payments Pvt. Ltd for payment aggregator and gateway services.

The company recently invested 740 crore in on-demand grocery delivery Grofers to enter the express delivery space for essentials, taking on rival Swiggy’s Instamart.

For the first quarter of FY2022, Zomato reported 37% sequential growth in gross order value at 4,540 crore. Revenue grew 26% sequentially to 1,160 crore in the April-June period.

Zomato compared earnings sequentially due to the severe impact of covid-related lockdown on its earnings for the first quarter of FY2021.

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