Zomato, the prominent player in the foodtech domain, has secured a crucial approval from the Reserve Bank of India (RBI) to function as an online payment aggregator. The certification, dated January 24, 2024, has been granted to Zomato Payments Private Limited (ZPPL), the company’s wholly-owned subsidiary established explicitly for the operation as a payment aggregator and issuer of pre-paid payment instruments.
The move, announced in an exchange filing on Thursday, positions Zomato to expand its offerings in the digital payments landscape. Zomato had unveiled ZPPL in 2021, setting the stage for its foray into the payment aggregator segment. The incorporation involved an initial subscription of 10,000 equity shares at INR 10 each, aggregating to INR 1 Lakh, with an authorized share capital of INR 20 Cr.
Zomato, known for its innovative strategies and diversified services, ventured into the Unified Payments Interface (UPI) arena last year. Despite a brief pause in onboarding new users to Zomato UPI, the company’s recent RBI nod positions it to revitalize and potentially expand its digital payment services.
Amid a series of strategic maneuvers, Zomato has witnessed notable success, achieving profitability in the current financial year and posting consecutive quarters of net profit. The company’s proactive measures, including the introduction of platform fees and a heightened focus on the quick commerce vertical Blinkit, have contributed to its robust financial performance. Zomato’s foray into logistics and the launch of the Xtreme app for quick parcel delivery further underscore its commitment to diversification.
As Zomato continues to fortify its presence in the market, the RBI’s authorization serves as a pivotal milestone, opening avenues for the company to elevate its position in the fintech landscape.
