Food aggregator Zomato on Saturday said it has incorporated a wholly owned non-banking financial company (NBFC), Zomato Financial Services Limited.
Last month, Zomato had said that its board had approved incorporation of a wholly owned subsidiary of the company as NBFC. The NBFC will have a proposed authorised capital of Rs 10 crore and proposed paid-up capital of Rs 3 crore, it had said.
With respect to “incorporation of wholly owned subsidiary of the company as non-banking finance company, we wish to intimate Zomato Financial Services Limited, wholly owned subsidiary of the company, has been incorporated on February 25, 2022,” the company said in an exchange filing on Saturday.
Earlier this month, in its earnings release, Zomato had said that it was in the process of setting-up its own NBFC which will allow the company to extend short term credit to its ecosystem — delivery partners, customers and restaurant partners.
“We believe we can add significant value to, and improve the experience of, our platform partners with this initiative without requiring Zomato to allocate significant capital. Over the next few years, our focus will remain creating a great experience for our stakeholders and helping to grow our overall ecosystem rather than optimising for revenues or profits,” the company had noted.
Zomato narrowed it consolidated net loss to Rs 63 crore for the quarter ending December 31, 2021 from Rs 352.6 crore in the year-ago period. It had posted a net loss of Rs 429 crore in the preceding September quarter.
Revenue from operations rose 82.47 per cent to Rs 1,112 crore during December quarter as against Rs 609.4 crore in the year-ago quarter.
Shares of Zomato on Friday ended 0.45 per cent higher at Rs 78.80 on the BSE.
