Food tech major Zomato on Monday said its subsidiary Zomato Payment Pvt Ltd (ZPPL) has decided to voluntarily surrender the certificate of authorisation it obtained from the Reserve Bank to operate as an online payment aggregator.
“At Zomato, we do not see ourselves having a significant competitive advantage against the incumbents in the payments space and hence we don’t foresee a business in payments space as commercially viable for us, at this stage.
“While we were conscious of these developments as they unfolded, the real impact was more apparent as we got closer to putting in place the structure to commence the operations,” Zomato said in a regulatory filing.
The development comes months after the company received the licence from the central bank to operate as an online payment aggregator, with effect from January 24, 2024.
Zomato said the Board of Directors of ZPPL has also decided to withdraw the application dated November 11, 2021, submitted with the RBI to operate as the issuer of pre-paid payment instruments.
Zomato announced the incorporation of ZPPL in 2021 as its wholly-owned subsidiary to carry out the business as a payment aggregator and an issuer of prepaid payment instruments.
In the regulatory filing, the company further stated that thanks to the RBI’s efforts, the payments landscape in India has evolved meaningfully over the past couple of years since the time it applied for these licenses.
“This has over time, therefore, resulted in a seamless payment experience for customers,” said Zomato.
The company believes that there is no material impact on the revenue/operations of the company on account of such voluntary surrender and withdrawal, hence this disclosure is being made voluntarily, it added.
Zomato Results Q4 2024
Zomato declared the results for the quarter and financial year ended March on Monday.
Zomato reported a consolidated net profit of Rs 175 crore on the back of higher revenue.
The company had posted a consolidated net loss of Rs 188 crore in the same quarter last fiscal, Zomato Ltd said in a regulatory filing.
Consolidated revenue from operations stood at Rs 3,562 crore. It was Rs 2,056 crore in the year-ago period, it added.
Total expenses were Rs 3,636 crore. The company posted its total expenses at Rs 2,431 crore in the corresponding period a year ago, it said.
The consolidated net profit was Rs 351 crore. It had posted a consolidated net loss of Rs 971 crore in the previous fiscal ended on March 31, 2023, the filing said.
In FY24, consolidated revenue from operations stood at Rs 12,114 crore. It was at Rs 7,079 crore.
The results for the year ended March 31, 2024, are not comparable with the year ended March 31, 2023, due to the acquisition of Blink Commerce Pvt Ltd (formerly known as Grofers India Pvt Ltd) in June 2022, the filing said.
(With PTI inputs)
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