Food delivery platform Zomato has begun the liquidation of its Portugal-based subsidiary, Zomato Media Portugal, Unipessoal Lda. The company announced the decision in a filing with the Bombay Stock Exchange (BSE) on July 21, 2023.
Zomato entered the Portuguese market in 2017. However, the company has been struggling to gain traction in the market. In 2022, Zomato’s revenue in Portugal was only €2.5 million, which is a fraction of its revenue in other markets.
The liquidation of Zomato Media Portugal is a sign that the company is scaling back its international expansion plans. In recent months, Zomato has also announced the closure of its operations in Australia and New Zealand.
“We have made the difficult decision to liquidate our operations in Portugal,” said Deepinder Goyal, CEO of Zomato. “We believe that this is the best decision for the long-term health of our business.”
“We are grateful to our team in Portugal for their hard work and dedication,” said Goyal. “We wish them all the best in their future endeavors.”
The liquidation of Zomato Media Portugal is a setback for the company. However, it is a necessary step to ensure the long-term health of the business. Zomato is focusing on its core markets in India and Southeast Asia, where it is still growing rapidly.