Zomato withdraws its NBFC licence application with RBI

Foodtech major Zomato on Tuesday (July 2) said that its subsidiary Zomato Financial Services Limited (ZFCL) has decided to voluntarily withdraw its application to operate as a non-banking financial company (NBFC). It said it doesn’t wish to pursue the lending business anymore. Zomato incorporated Zomato Financial Services in February 2022.

In an exchange filing on July 2, the company said the decision was taken by the board of Zomato Financial Services Limited.

"We would like to inform the stock exchanges that the board of directors of ZFSL, a wholly owned subsidiary of Zomato Limited at its meeting held today i.e. July 2, 2024, has decided to voluntarily withdraw the application dated April 29, 2022, submitted with the Reserve Bank of India (RBI) for getting a certificate of registration for undertaking the business of a Non-Banking Financial Company (Type II NBFC-ND) as we do not wish to pursue the lending/credit business anymore," the company stated.

“There is no material impact on the revenue/operations of the company and this disclosure is being made voluntarily,” the company added.

The disclosure of the surrender of the certificate of authorization by Zomato Payment Private Limited (ZPPL), a subsidiary of Zomato, to operate as an online payment aggregator was done voluntarily earlier this year. ZPPL, initially established in 2021 as a wholly-owned subsidiary by Zomato, was intended to function as a payment aggregator and a prepaid payment instruments issuer.

The recent development comes shortly after Zomato Payment Private Limited, a subsidiary of Zomato, relinquished its payment aggregator license. Earlier this year, Zomato was reportedly engaged in discussions with various Non-Banking Financial Companies (NBFCs) regarding the provision of working capital loans to its affiliated restaurants.

Shares of Zomato Ltd closed at Rs 209.05, gaining Rs 5 today, on the BSE.