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Zomato’s subsidiary, Zomato Financial Services Limited (ZFCL), has withdrawn its application for an NBFC licence from the RBI.
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The company has decided not to pursue the lending business and has voluntarily withdrawn its application.
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This decision will not have a material impact on the company’s revenue and operations.
Zomato, a foodtech major, has decided to withdraw its application for a non-banking financial company (NBFC) licence from the Reserve Bank of India (RBI). The company’s subsidiary, Zomato Financial Services Limited (ZFCL), had applied for the licence in April 2022, but has now decided not to pursue the lending business.
The decision to withdraw the application was taken by the board of ZFCL and has been communicated to the stock exchanges. Zomato has clarified that this decision will not have a material impact on the company’s revenue and operations. This development comes shortly after Zomato Payment Private Limited, another subsidiary of Zomato, relinquished its payment aggregator licence.
Zomato had been exploring opportunities to provide working capital loans to its affiliated restaurants through partnerships with NBFCs. However, with the withdrawal of its NBFC licence application, the company will no longer be pursuing this business opportunity.
