Zomato plans new management structure with multiple CEOs
Zomato posted a smaller quarterly loss on Monday.
Mumbai:
Zomato, the Indian food delivery company backed by China’s Ant Group, plans to reorganize its management so that each of its individual companies has its own CEO, while the parent company will be renamed “Eternal”, according to an internal memo from the company. company consulted by Reuters. .
Zomato CEO Deepinder Goyal in the memo said the company is now leading not only Zomato’s food delivery business but also other big businesses.
Mr Goyal said these included Zomato’s proposed purchase of grocery delivery startup Blinkit, cooking and food ingredient supply company Hyperpure and for-profit company Feeding India. non-profit that aims to reduce hunger in poor communities in India.
“We are moving from a company where I was the CEO to a place where we will have multiple CEOs leading each of our companies … all acting as peers to each other,” Goyal said in the memo.
Zomato did not immediately respond to an email seeking comment.
A source familiar with the matter said the memo was released by Mr Goyal last week. It was first reported by the Moneycontrol news portal on Monday.
Shares of Zomato plunged to a record low last week as a year-long share lock-up period for developers, employees and other investors expired.
The company made a spectacular debut on July 23, 2021 on the Mumbai stock market, but its shares have lost more than 60% of their value since then due to concerns over valuations and growth amid turmoil among stocks. of global growth.
Mr Goyal also said in the memo that “Eternal”, the proposed name for the parent organization, would remain an “internal name for now”.
Zomato posted a lower quarterly loss on Monday, helped by an increase in restaurant meal orders on its platform.
The company’s net loss was 1.86 billion rupees ($23.53 million) for the three months ended June 30, compared to a loss of 3.56 billion rupees a year ago, the company said in a regulatory filing.
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