Zomato to set up a non-bank financial company to enter the financial services industry

Zomato Ltd, a restaurant aggregator and food delivery company, decided to venture into the financial services industry and decided to establish a Non-Banking Financial Company (NBFC) as a wholly owned subsidiary for this purpose.

The proposed paid-up capital of NBFC will be Rs 3 crore, while the authorized capital is set at Rs 10 crore. The company name is being finalized subject to approval by the Ministry of Corporate Affairs, Zomato said in a filing with the ESB.

The wholly owned subsidiary will need the approval of the Reserve Bank of India to conduct its financial services business.

Zomato, founded by Deepinder Goyal and Pankaj Chaddah in 2008, is a professionally run company with no promoter or group of promoters.

In December 2020, Zomato signed a pact with InCred, a non-banking finance company, under which the latter will provide loans to partner restaurants. The Coronavirus (Covid-19) pandemic has hit the food delivery industry hard, leading to a sharp decline in gross merchandise value.

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