Zomato Withdraws NBFC license, says doesn’t Want to Pursue Lending Business Anymore

The food delivery giant said that this decision won’t have any material impact on the revenue or operations of the company.
Zomato Withdraws NBFC license, says  doesn’t Want to Pursue Lending Business Anymore

In a regulatory filing, food delivery giant Zomato has mentioned that it has withdrawn its Non-Banking Financial Company license. The company has said that it doesn’t want to pursue the lending and credit business anymore. 

The company said that it has decided to “voluntarily withdraw the application dated April 29, 2022, submitted with the Reserve Bank of India (“RBI”) for a certificate of registration for undertaking the business of a non-banking financial company (Type II NBFC-ND), as we do not wish to pursue the lending or credit business anymore.” 

The food delivery giant said that this decision won’t have any material impact on the revenue or operations of the company. The decision was made by the company at its meeting that was held on July 2. 

In May, Moneycontrol reported that Zomato was in talks to revive its lending business. The food delivery giant was reportedly in negotiations with several NBFCs to provide working capital loans to its affiliated businesses. In 2020, Zomato entered the lending business to give loans to its partner restaurants. 

Meanwhile, Zomato has mentioned that it received approval from the shareholders to expand its employee stock option plan, or ESOP plan. “An employee stock ownership plan (ESOP) is an employee benefit plan that gives workers ownership interest in the company in the form of shares of stock,” as per Investopedia. Today, Zomato’s stock price closed at Rs 208, up by 2.23 percent. 

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