Foodtech platform Zomato has pulled the plug of its business Nutraceutical. This development comes hours after the company decided to shut down its grocery delivery business from September 17, citing tough competition and moderate success.
In 2020, Zomato had started its nutraceutical business with the launch of health and fitness products.
According to a report, the company has taken this harsh decision at a time when the government is on the way to become stricter about private label norms for marketplace businesses in the country.
Nutraceuticals can be understood as something that is related to food products that offer medical or health benefits. The products can range from food to beverages or even tablets that claim to prevent or cure chronic diseases.
Tapping this opportunity last year, the company has also appointed Gaurav Gupta, Chief Operating Officer as the head of this division for five years.
“This business can potentially be a large value driver for Zomato in the future,” Gupta had said last year.
The food delivery company that restarted its grocery delivery business had announced to shut down its business from September 17 as it is facing stiff competition from Swiggy and Dunzo.
The company further added that its investment in Grofers will generate better outcomes than its in-house grocery effort.