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Zomato Pulls Out Of International Markets

The company continues to operate in the United Arab Emirates (UAE), but only as a dining-out business and not food delivery one.

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Image used for Representational Purpose. (PTI Photo)

New Delhi: Zomato has pulled out of almost all its international businesses. The countries include the United States (US), United Kingdom (UK), Singapore and now Lebanon. As per the company’s spokesperson, this is a part of Zomato’s “clean up drive”.

Zomato’s chief executive (CEO) Deepinder Goyal, said, “We are also shutting down our operations in Lebanon, which is the only international business we were left with (other than dining-out business in UAE) after shutting down the rest of our international operations last year.”

As far as the Lebanon market is concerned, closure came after the suspension of Zomato Foods Private Limited and Zomato Ireland Limited (Lebanon branch, the company said in its financial statement.

The company has also closed the Singapore-based Zomato Media Private Limited (ZMPL), UK-based Zomato UK Limited (ZUL) and US-based subsidiary Nextable Inc in the last quarter.

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As per Zomato’s quarterly financial statements released on November 10, zomato has identified three geographical segments as reportable segments namely India, United Arab Emirates (UAE) and the Rest of the World (ROW) (such as Australia, New Zealand, Philippines, Indonesia, Malaysia, USA, Lebanon, Turkey, Czech, Slovakia, Poland, Qatar, Ireland). 

The company continues to operate in the United Arab Emirates (UAE), but only as a dining-out business and not food delivery one.

According to the financial statement released by Zomato, India is the biggest market for Zomato in terms of revenue, followed by the UAE.

Talking about the present situation of zomato, UAE is the only profitable market for Zomato at the moment, at least before paying the taxes. 

Zomato has planned to put its focus on “growth geographies”, which are currently less profitable than the more mature cities. The company also looks to invest close to a billion dollars in Indian startups over the next two years to expand its ecommerce network.

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The company aims to create a similar network like Sanjeev Bikhchandani-led InfoEdge and Chinese business conglomerate Alibaba by placing bets on young startups.