Zomato Announces Auditor Resignation for Subsidiaries: Strategic Move to Optimize Audit Process

Zomato Announces Auditor Resignation for Subsidiaries: Strategic Move to Optimize Audit Process

Zomato is a leading online food delivery and restaurant discovery platform. Recently, they announced the resignation of the auditor for its subsidiaries companies, Zomato Hyperpure and Blink Commerce with immediate effect. Batliboi & Associates are the statutory auditors of these two subsidiary companies who were appointed for five years from April 1, 2023, till the conclusion of the 13th AGM, but they ended on the 12, 2024. This is the official news from Zomato said in a regulatory filing.

This is a strategic decision by Zomato to hire Deloitte Haskins & Sells LLP, the current auto for the Main Zomato companies as the auditor for the Zomato Hyperpure Private Limited (ZHPL) and Blink Commerce Private Limited (BCPL). Now, Deloitte Haskins & Sells LLP will look out for the audit company for Zomato as well as its subsidiaries.

This official news came out just before Zomato’s board meeting scheduled for Monday. During this board meeting, where they are going to review and approve the fourth quarter and the financial year ending March 2024 work.

The rationale for this choice was made clear in the resignation letter from Batliboi & Associates. “We understand that the holding company’s management wants to align the company’s statutory auditor with the holding company auditors responsible for the audit of consol accounts to avoid some duplication and bring some efficiencies in the audit process at the group level,” the firm said in response to numerous conversations and an email from Zomato Limited’s global controller of finance dated May 8, 2024.

 

 

Zomato and Its subsidiaries

Zomato is a leading online food delivery and restaurant discovery platform. It has diversified its business by venturing into various subsidiaries. Two notable subsidiaries are Zomato Hyperpure and Blinkit Commerce-

  • Zomato Hyperpure: Zomato Hyperpure is formerly known as Hyperpure. It is a subsidiary of Zomato which is focused on the logistics and supply chain of the food delivery business. It is a new initiative by Zomato in 2018. The aim behind launching Hyperpure is to revolutionise the way restaurants source their ingredients. They want to deliver high-quality, fresh produce directly from farmers and producers to the restaurants throughout this platform.
  • Blinkit Commerce: Blinkit Commerce is formerly known as Grofers. It is an Indian online grocery delivery service. It was founded in 2013 and acquired by Zomato in 2021. The Blinkit or Grofers aim to provide customers with a convenient and affordable way to shop for groceries and household essentials online. Customers can book groceries from their homes and get them delivered in 10 minutes. Zomato takes Grofers to the next level.  Customers can buy a wide assortment of products including groceries, fruits, vegetables, household items, personal care products, and more through apps or websites.

 

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