Zomato’s Bold Move: Saying Goodbye to Payments, Welcoming Growth in Delivery and Beyond
Zomato, a big company in food technology, has made a big change in how it does business. They decided that their part called zomato payment pvt ltd (ZPPL) will give up its permission to work as an online payment company. This shows that zomato is thinking about how it comes in the payments business.
The company said that its part called Zomato Payments Private Limited (ZPPL) has chosen to give back the permission it got from RBI to work as an online payment company under a law called the payment and settlements systems act 2007. Before this, zomato made a company called ZPPL in August 2021 so they seem follow the rules set by RBI for payment companies and payment gateways. The company got the confirmation from RBI in January this year to start working as a payment company and to give out pre-paid payment things. They also said that its writing down its investment of Rs 39 crore in ZPPL, saying it’s a misfortune. Also, ZPPL has chosen to cancel its application with the RBI, which already gave it permission to operate as a supplier of prepaid payment instruments under certain laws. Be that as it may, ZPPL assured investors that its other exercises will proceed as usual.
Last year, zomato started offering payments through UPI, which is a way to pay electronically. The company worked with ICICI Bank to offer payments for both business and people. This data is available on the National Payments corporation of india’s (NPCL) website. The cost for delivery and related charges made up 30.7% of the total investing, which rose by 4.7% to RS 1,118 crore in the fourth quarter of FY24. Zomato’s overall spending increased to Rs 3,636 crore in Q4FY24 from Rs 3,382 crore in Q3FY24, driven by costs like acquirement, representative benefits, publicizing, and marketing. Thanks to better cost management and increased operations, Zomato saw its benefits rise by 26.8% to Rs 175 crore in Q4 FY24 from Rs 138 crore in Q3 FY24. On a unit level, the company spent Rs 1.02 to earn a rupee in Q4 FY24.
While Zomato’s advance continues, all eyes are presently on Blinkit, as its turnaround has surprised many. This move in center has put weight on Swiggy’s Instamart, which is presently seen as slacking behind. Their center delivery business still faces challenges, but its other services, especially Blinkit, are anticipated to eclipse it in the coming year. If this happens, it would be a surprising accomplishment, demonstrating Deepinder Goyal’s vision right. In spite of skepticism around the Blinkit procurement, Goyal had predicted solid growth and benefit, which is presently getting to be a reality in less than 24 months.
