Zomato Financial withdraws NBFC licence application

Zomato said on Tuesday that it has decided to withdraw its application for a non-banking financial company (NBFC) licence, as it does not want to pursue the lending business anymore. The decision to withdraw the application was taken by the board of Zomato Financial Services, a wholly-owned subsidiary, the company said in an exchange filing on Tuesday.

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

The Zomato stock ended the day at Rs 208.52 on the NSE, up 2.23% from the previous close. 

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Zomato had entered the lending business in 2000 to help its partner restaurants during the pandemic to help them stay afloat. It had incorporated Zomato Payment in August 2021 to apply for a payment aggregator (PA) authorisation and registered Zomato Financial Services in February 2022 but failed to get its NBFC licence. As earlier reported, the company surrendered its PA/PG licence, and even wrote down Rs 39 crore worth of investments in ZPPL in the March quarter.