Zomato, one of the leading food ordering and restaurant discovery portals is planning on opening subsidiary companies in over a dozen countries all around the world. This step by the Gurgaon based company comes even before the portal is preparing to launch its operations in the markets of these countries. Zomato hopes to get a headstart in these markets through this move.
The portal has already opened “on paper” companies in Finland, Mexico, Germany, Norway and Sweden. These on paper companies are complete with all legal requirements and a bank account. Zomato is planning to take on its closest rival, Germany’s Foodpanda, through these global expansion moves. Foodpanda is currently present in over 40 countries all around the globe.
According to Deepinder Goyal, cofounder and CEO of Zomato Media Private Limited, “A ready ‘company’ makes our entry into that market easier either by organic or inorganic means.” He further said, “Opening a bank account for a company is a difficult process in many countries and takes several months, we have decided to smoothen our entry into major world markets in the next four years.” Goyal said this in a statement to the Economic Times.
The Gurgaon based company currently has its presence in over twenty countries all around the world. The portal has its offices in New Zealand, India, Poland, Dubai, Turkey, UK, Australia, Canada and Brazil, to name a few. However, with the addition of these on paper companies, the company’s presence has crossed the tally of Foodpanda’s forty countries in the world.
According to various experts, the six year old company has undertaken the right strategy to capture the markets in a fast growing sector.
This is an innovative way,’ said Rishikesha T Krishnan, Professor of Corporate Strategy and Director at IIM-Indore in a statement to ET. He further added, “Historically the way to test the waters in an international market was to enter in a joint venture with a local company but Zomato needs to ensure that the brand is protected.”
In many countries a local entity is required in order to establish operations. According to the Indian regulations, a company can open as many subsidiaries as it wants globally but each subsidiary has to be accounted for.