Zomato has launched Zomato Payments Private Limited as a wholly-owned subsidiary to manage payments and technological services in compliance with the Reserve Bank of India’s regulations. The online food delivery platform announced in a regulatory filing on Wednesday that it was incorporated on August 4, 2021.
Zomato Payments Private Limited (ZPPL) was registered with a share capital of Rs. 20 crore. The Zomato subsidiary was incorporated with an initial subscription of 10,000 equity shares Rs. 10 apiece, totaling Rs 1,00,000.
According to the filing, the subsidiary will provide, implement, undertake, support, offer, distribute, or otherwise promote services, schemes, as well as projects to consumers, including all kinds of digital payments such as virtual payment systems, e-wallets, and Cash cards, and many others. It would also implement a payment and settlement platform, as well as payment gateway services, prepaid and post-paid payment devices, and payment solutions, including closed and semi-closed systems payment devices, and mobile phone direct debit facilities. Zomato Payments will also offer mobile phone payment options for all products and services, as well as utility payments.
Zomato has entered the digital payments market with this approach, only days after marking a spectacular IPO. This places the Deepinder Goyal-led venture against industry veterans and giants like Paytm, PhonePe, Google Pay, MobiKwik, among others. In June last year Zomato’s biggest competitor, Swiggy, in collaboration with ICICI Bank, introduced its “Swiggy Money” digital wallet to encourage customers to deposit money on the platform to complete their food orders.
Zomato Payments intends to oversee the payment experience for the company’s primary food ordering business as well as adjacent services like groceries and fitness. With aspirations to re-enter the grocery delivery market, the firm had already acquired a 9.3 percent ownership in Grofers. Furthermore, its restaurant supply division HyperPure, along with Fitso, which concentrates on on-demand sporting and wellness activities, will support the in-house payment platform.
Because of the Covid-19 lockdown, many peoples were isolated to their residences for the past year, the sector has expanded considerably. People have also switched to digital payments to minimize physical contact and protect themselves from infection. Zomato may be hoping to capitalize on the growing popularity of digital payments.
Zomato aforementioned went public, becoming India’s first tech unicorn. On July 23, Zomato launched at Rs 116 per share on the NSE and quickly jumped to Rs 138 before concluding at Rs 125. The food-tech major outperformed all predictions on day one, with a 66 percent surge in share price at a valuation of slightly more than $13 billion (~Rs 98,000 crore). The opening pricing of Zomato’s stock on Friday was Rs 135.30.