Zomato initiates liquidation of Portugal-based subsidiary

Zomato has initiated the liquidation proceedings of its wholly-owned subsidiary, Zomato Media Portugal, according to the disclosure made to the stock exchange.

Zomato clarifies that its Portugal entity is not a material subsidiary and has no active business operations which will not affect the turnover/revenue of the company.

ZM Portugal has a net worth Rs 12 million ($0.14 million), as disclosed in the filing. The process of liquidation will be completed within a month subject to the requisite approvals. With this, Zomato has initiated liquidation proceedings for five subsidiaries including Indonesia, New Zealand, Australia, Jordan, and Portugal.

This month, the company’s stock price surged 9% to touch its 52-week high price. The food tech major is yet to file its financial numbers for Q1 FY24. During FY23, it posted a 68.9% surge in revenue to Rs 7,079 crore, and net losses of the firm shrank 20.5% to Rs 971 crore in the last fiscal year.