Food delivery giant Zomato on March 23 announced the dissolution of Zomato Canada Inc, its step-down subsidiary company based out of Toronto.
In its filing with BSE, the popular online food delivery service provider noted that its Canadian arm was not a "material subsidiary" of Zomato and hence, its closure would not affect the overall turnover or revenue of the Gurgaon-based company.
The submission also explained how Zomato Canada had ceased all operations some time ago, as detailed by their prospectus last year.
Notably, a subsidiary i.e. an independent company where more than 50 percent of stake is held by another firm, is considered material when its income or net worth constitutes more than 10 percent of the consolidated income of the listed entity.
Zomato had forayed into Canadian food delivery territory way back in 2014 with about $10 million as a part of its expansion strategy and as a useful segue into the US markets.
Recently, the company raised some eyebrows after founder and CEO Deepinder Goyal announced that Zomato plans to deliver food to its customers in record 10 minutes, following the footsteps of many grocery delivery companies.
Following this, he also issued a clarification stating that the 10-minute delivery would be equally safe for their delivery partners as their current 30-minute delivery.
In addition to ensuring no compromise on quality, hygiene, delivery partner safety, and packaging, Goyal also listed a few dishes like bread, omelette, poha, coffee, chai, biryani, momos, and Maggi that will be available as a part of its 10-minute plan.
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