Zomato to form non-banking finance company to enter financial services biz
- IBEF
- January 31, 2022
Zomato Ltd, a restaurant aggregator and meal delivery service, has opted to enter the financial services market and has established a wholly-owned subsidiary to do so.
The NBFC's proposed paid-up capital is Rs. 3 crores, while its authorised capital is Rs. 10 crores. Zomato said in a filing with the BSE that the company's name is being finalised, subject to approval by the Ministry of Corporate Affairs.
To operate in the financial services industry, the wholly-owned subsidiary will need Reserve Bank of India approval.
Zomato, which was launched in 2008 by Deepinder Goyal and Pankaj Chaddah, is a professionally run business with no promoters or promoter groups.
Zomato signed a deal with InCred, a non-banking finance company, in December 2020, under which the latter will provide loans to restaurant partners. The food delivery business was heavily damaged by the coronavirus (Covid-19) epidemic, which resulted in a dramatic drop in gross merchandise value.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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