Zomato sets up digital payments subsidiary Zomato Payments

Zomato that went public last month has incorporated a wholly-owned subsidiary called Zomato Payments. The company was incorporated on August 4, said a regulatory filing. The company said in the filing that Zomato Payments Private Ltd (ZPPL) has been formed in accordance with the Reserve Bank of India rules to provide payment aggregator and payment gateway services.

ZPPL will offer services pertaining to electronic and virtual payment systems, e-wallets, mobile-wallets, cash card to consumers, it said. The company will also set up a payment and settlement system, payment gateway services, prepaid and post-paid payment instruments including closed/ semi-closed systems payment instruments, direct debit facility on mobile phone, provide solutions for payment for all goods and services, and utility bills through mobile phone, etc.

The payments service has an authorised share capital of Rs 20 crore, divided into 2,00,00,000 equity shares of Rs 10, stated the Deepinder Goyal-led company.

The subsidiary has been incorporated with an initial subscription of 10,000 equity shares of Rs 10 each, aggregating to Rs 1 lakh.

With ZPPL, the food delivery giant has forayed into the digital payments space that has bigwigs like Paytm, Google Pay, PhonePe, MobiKwik and more. With people placing orders from the confines of their homes amid the pandemic restrictions, the digital payments space has seen a rapid expansion.

The digital payments subsidiary comes days after Zomato’s Rs 9,375-crore IPO. It opened for subscription in July 14-16 and saw 38.25 times subscription from investors -- the highest in 13 years among IPOs valued at more than Rs 5,000 crore.

Also read: Sanjeev Bikhchandani on Zomato: ‘Knew they would succeed but not that they would be this big’
Also read: Zomato to launch 'Zomato Pro Plus'; offers unlimited free deliveries