Zomato decided to give up its authorization to operate as an online payment aggregator.
This means that Zomato will no longer be offering payment services like handling transactions and processing payments for other businesses.
Zomato doesn't think it can compete well in the payments space against existing big players. They don't see it as a good business opportunity for them right now.
Zomato got permission from the Reserve Bank of India (RBI) in January 2024 to operate as a payment aggregator, but now they've decided to surrender this permission.
Zomato also decided to withdraw its application to issue prepaid payment instruments, like digital wallets, which they had applied for in November 2021.
Zomato doesn't think this decision will greatly affect its business or revenue, so they're informing investors about it voluntarily.
Zomato acknowledges that the payment scene in India has improved a lot recently, thanks to efforts by the RBI.
They believe customers now have better and easier ways to make payments.
So, in simple terms, Zomato has decided to step back from the payment business because they don't see themselves doing well in it compared to other big players, and they think customers already have plenty of good payment options.