{"id":1281636,"date":"2024-05-14T07:21:34","date_gmt":"2024-05-14T01:51:34","guid":{"rendered":"https:\/\/trak.in\/stories\/?p=1281636"},"modified":"2024-05-14T07:21:54","modified_gmt":"2024-05-14T01:51:54","slug":"zomato-shuts-down-wallet-surrenders-license-reports-rs-175-crore-profit","status":"publish","type":"post","link":"https:\/\/trak.in\/stories\/zomato-shuts-down-wallet-surrenders-license-reports-rs-175-crore-profit\/","title":{"rendered":"Zomato Shuts Down Wallet, Surrenders License; Reports Rs 175 Crore Profit"},"content":{"rendered":"\n<p>In a surprising move, foodtech giant Zomato has opted to surrender its payment aggregator and wallet license to the Reserve Bank of India (RBI), signaling a shift in its payment strategy. Here&#8217;s a breakdown of the key developments:<\/p>\n\n\n\n<p><strong>Voluntary Surrender of License<\/strong><\/p>\n\n\n\n<p>Zomato disclosed that its subsidiary Zomato Payments Private Limited (ZPPL) has decided to voluntarily <a href=\"https:\/\/entrackr.com\/2024\/05\/zomato-surrenders-payment-aggregator-and-wallet-license-to-rbi\/\">surrender<\/a> the certificate of authorization obtained from the RBI. This decision marks a departure from its previous strategy of operating as an online payment aggregator under the Payment and Settlements Systems Act 2007.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"576\" src=\"https:\/\/trak.in\/stories\/wp-content\/uploads\/2024\/05\/Zomato-Food-Delivery-1-1280x720-1024x576-1280x720-1-1024x576.jpeg\" alt=\"Zomato Shuts Down Wallet, Surrenders License; Reports Rs 175 Crore Profit\" class=\"wp-image-1281649\" srcset=\"https:\/\/trak.in\/stories\/wp-content\/uploads\/2024\/05\/Zomato-Food-Delivery-1-1280x720-1024x576-1280x720-1-1024x576.jpeg 1024w, https:\/\/trak.in\/stories\/wp-content\/uploads\/2024\/05\/Zomato-Food-Delivery-1-1280x720-1024x576-1280x720-1-300x169.jpeg 300w, https:\/\/trak.in\/stories\/wp-content\/uploads\/2024\/05\/Zomato-Food-Delivery-1-1280x720-1024x576-1280x720-1-768x432.jpeg 768w, https:\/\/trak.in\/stories\/wp-content\/uploads\/2024\/05\/Zomato-Food-Delivery-1-1280x720-1024x576-1280x720-1.jpeg 1280w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<p><strong>RBI Approval and Impairment Loss<\/strong><\/p>\n\n\n\n<p>Previously, Zomato had obtained approval from the RBI to function as a payment aggregator and issuer of pre-paid payment instruments in January this year. However, the recent decision to surrender the license coincides with the firm&#8217;s declaration of a Rs 39 crore impairment loss on its investment in ZPPL.<\/p>\n\n\n\n<p><strong>Financial Performance and ESOP Announcement<\/strong><\/p>\n\n\n\n<p>Despite the strategic shift, Zomato reported robust financial performance for the last quarter of FY24. The company recorded a profit after tax of <a href=\"https:\/\/ddnews.gov.in\/en\/zomatos-profit-surged-by-26-8-pc-to-rs-175-crore-in-q4-fy23-24\/#:~:text=The%20online%20food%20delivery%20platform,the%20corresponding%20period%20last%20year.\">Rs 175 crore<\/a> and reported a revenue of Rs 3562 crore, marking a 71% surge from the previous fiscal year. Moreover, Zomato announced fresh employee stock option (ESOP) options under a new plan valued at around $450 million.<\/p>\n\n\n\n<p><strong>Zomato&#8217;s Consolidated Net Profit<\/strong><\/p>\n\n\n\n<p>Zomato&#8217;s consolidated net profit for the fourth quarter of FY23-24 witnessed a significant surge of 26.8% to Rs 175 crore compared to the previous quarter. This marks the fourth instance of profit recorded by the company in its earnings history.<\/p>\n\n\n\n<p><strong>Acceleration in Topline Growth<\/strong><\/p>\n\n\n\n<p>The company&#8217;s year-on-year topline growth accelerated to an impressive 61%, surpassing the stated outlook of 40%. This growth was attributed to strong performances in both food delivery and quick commerce segments.<\/p>\n\n\n\n<p><strong>Adjusted EBITDA and Market Response<\/strong><\/p>\n\n\n\n<p>Zomato&#8217;s Adjusted EBITDA reached Rs 194 crore, marking a substantial improvement from the same quarter last year. Despite these positive financial indicators, the company&#8217;s shares experienced a decline of over 2% during Monday&#8217;s trading session, indicating mixed market sentiments.<\/p>\n\n\n\n<p><strong>Summary:<\/strong><\/p>\n\n\n\n<p>Zomato has voluntarily surrendered its payment aggregator license to the RBI, marking a shift in its payment strategy. Despite this move, the company reported robust financial performance for FY24, with a surge in net profit and revenue. Zomato also announced fresh ESOP options for its employees.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>In a surprising move, foodtech giant Zomato has opted to surrender its payment aggregator and wallet license to the Reserve Bank of India (RBI), signaling a shift in its payment strategy. Here&#8217;s a breakdown of the key developments: Voluntary Surrender of License Zomato disclosed that its subsidiary Zomato Payments Private Limited (ZPPL) has decided to [&hellip;]<\/p>\n","protected":false},"author":30,"featured_media":1281649,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[4652,671],"class_list":["post-1281636","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-wallet","tag-zomato"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.9 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Zomato Shuts Down Wallet, Surrenders License; Reports Rs 175 Crore Profit - Trak.in - Indian Business of Tech, Mobile &amp; Startups<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/trak.in\/stories\/zomato-shuts-down-wallet-surrenders-license-reports-rs-175-crore-profit\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Zomato Shuts Down Wallet, Surrenders License; Reports Rs 175 Crore Profit - Trak.in - Indian Business of Tech, Mobile &amp; Startups\" \/>\n<meta property=\"og:description\" content=\"In a surprising move, foodtech giant Zomato has opted to surrender its payment aggregator and wallet license to the Reserve Bank of India (RBI), signaling a shift in its payment strategy. Here&#8217;s a breakdown of the key developments: Voluntary Surrender of License Zomato disclosed that its subsidiary Zomato Payments Private Limited (ZPPL) has decided to [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/trak.in\/stories\/zomato-shuts-down-wallet-surrenders-license-reports-rs-175-crore-profit\/\" \/>\n<meta property=\"og:site_name\" content=\"Trak.in - Indian Business of Tech, Mobile &amp; Startups\" \/>\n<meta property=\"article:published_time\" content=\"2024-05-14T01:51:34+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2024-05-14T01:51:54+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/trak.in\/stories\/wp-content\/uploads\/2024\/05\/Zomato-Food-Delivery-1-1280x720-1024x576-1280x720-1.jpeg\" \/>\n\t<meta property=\"og:image:width\" content=\"1280\" \/>\n\t<meta property=\"og:image:height\" content=\"720\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Mohul Ghosh\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Mohul Ghosh\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/trak.in\/stories\/zomato-shuts-down-wallet-surrenders-license-reports-rs-175-crore-profit\/\",\"url\":\"https:\/\/trak.in\/stories\/zomato-shuts-down-wallet-surrenders-license-reports-rs-175-crore-profit\/\",\"name\":\"Zomato Shuts Down Wallet, Surrenders License; 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