“RBI Greenlights Zomato’s Entry into Online Payment Aggregation Arena”
In a significant development for Zomato, the Reserve Bank of India (RBI) has granted authorization for the food delivery giant to function as an ‘Online Payment Aggregator.’ Zomato announced the news in an exchange filing on Thursday, revealing that its wholly-owned subsidiary, Zomato Payments Private Limited (ZPPL), has received a certificate of authorization from the RBI, effective January 24, 2024.
In a significant development for Zomato, the Reserve Bank of India (RBI) has granted authorization for the food delivery giant to function as an ‘Online Payment Aggregator.’ Zomato announced the news in an exchange filing on Thursday, revealing that its wholly-owned subsidiary, Zomato Payments Private Limited (ZPPL), has received a certificate of authorization from the RBI, effective January 24, 2024.
The RBI’s approval allows Zomato to operate as an ‘Online Payment Aggregator’ in accordance with the regulatory guidelines issued by the central bank. This move marks a strategic expansion for Zomato, as it positions itself to play a more prominent role in the digital payment landscape in India.
Zomato had previously disclosed its intentions to establish ZPPL as a subsidiary for carrying out activities such as payment aggregation and the issuance of pre-paid payment instruments. The recent RBI approval solidifies the company’s position in the financial technology sector, enabling it to facilitate online payments seamlessly.
Despite this positive news, Zomato’s stock experienced a downturn, with shares trading in the red at ₹136.00 when the markets closed. The current market capitalization of the company stands at ₹1,18,468 crore, as reported on the BSE website.
Zomato’s CEO, Deepinder Goyal, recently shared a remarkable achievement for the food delivery platform. On New Year’s Eve 2023, Zomato delivered nearly as many orders as it did on the combined New Year’s Eves from 2015 to 2020. Goyal expressed excitement about the platform’s future growth and success.
In addition to its recent financial authorization, Zomato has been making headlines for its potential acquisition moves. Last December, Bloomberg reported that Zomato extended an offer to acquire Shiprocket, an Indian e-commerce shipping startup. The offer valued Shiprocket at approximately $2 billion, according to anonymous sources. However, no final decision has been made, and Zomato could choose not to proceed with the acquisition, as per the undisclosed insiders.
Zomato’s foray into the online payment aggregator space aligns with the company’s broader strategy of diversifying its services and expanding its presence in the Indian digital ecosystem. The RBI’s approval is expected to open new avenues for Zomato as it continues to navigate the dynamic landscape of the food delivery and digital payments industries.
Sources By Agencies
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