Zomato has recently notified the stock exchanges that it has incorporated a new entity — Zomato Payments Private Limited (ZPPL) as its payment and technology service.
The company has clearly specified that the objective of incorporating the wholly-owned subsidiary is to carry on the business of providing payment aggregator services and payment gateway services following the guidelines of the Reserve Bank of India. The subsidiary has been incorporated with an initial subscription of 10,000 equity shares of Rs 10 each, aggregating to Rs 1,00,000, according to Zomato’s filing.
With digital transformation ruling the retail ecosystem Zomato steps into the payments space almost at the right time with Zomato Payments. Basis this company, Zomato can now issue, implement, undertake, assist, offer, distribute, or otherwise promote such services, schemes, and projects, including all types of electronic and virtual payment systems, e-wallets, mobile wallets, and cash cards to the consumers.
As is being predicted, the company will now also set up a payment and settlement system, payment gateway, services, prepaid and post-paid payment instruments, closed/semi-closed systems payment instruments, direct debit facility on mobile phones, payment solutions for all goods and services and utility bills through mobile phone under the subsidiary.