 "Zomato CEO Deepinder Goyal extends Rs 3.5 cr salary waiver till end of FY26")
Zomato CEO Deepinder Goyal has decided to forego his annual salary of Rs 3.5 crore until the end of FY26, marking a two-year extension of his earlier commitment. According to the company’s Qualified Institutional Placement (QIP) documents, Goyal had previously waived his remuneration for a 36-month period starting FY21, which ended in FY24.
In a letter to Zomato’s board dated April 1, 2024, Goyal confirmed his decision to extend the waiver until March 31, 2026. He will, however, continue to fulfil his duties as Managing Director and CEO. While Goyal is entitled to variable pay, the board will determine the exact amount in due course.
Goyal’s stake in Zomato rises amid stock rally
Goyal holds a 4.18 per cent stake in Zomato, valued at over Rs 10,000 crore as of November 25, reflecting substantial gains from the company’s stock rally. Zomato’s shares have soared over 140 per cent year-to-date, trading at Rs 277.35 per share on November 26. Zomato's Deepinder Goyal receives 10K applications for chief of staff role
Zomato’s market capitalisation currently stands at Rs 2.45 trillion, far ahead of its competitor Swiggy, which recently went public with a valuation of Rs 99,845 crore ($11.8 billion).
Zomato shares jump after QIP approval
Zomato’s shares surged 6 per cent on November 25, following approval of its Rs 8,500 crore ($1 billion) Qualified Institutional Placement and its inclusion in the Sensex. This marks the first time a new-age technology company has been included in the 30-stock index.
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The company has set a floor price of Rs 265.91 per share for the QIP, slightly lower than recent trading prices. It may also offer an additional 5 per cent discount after consulting with bankers.
Proceeds to fund growth and marketing
Zomato plans to utilise the QIP proceeds to drive growth initiatives:
• Rs 2,137 crore ($250 million): Setting up dark stores and warehouses.
• Rs 2,492 crore: Advertising, marketing, and branding.
• Rs 1,769 crore: Technological upgrades and infrastructure.
• The remaining funds will cover general corporate expenses.
This financial strategy positions Zomato to counter increasing competition, particularly from Zepto, which is aggressively expanding its operations.
Focus on quick commerce
Zomato aims to strengthen its quick commerce arm, Blinkit, leveraging its market leadership to outpace competitors like Swiggy and Zepto. With a robust cash reserve of Rs 19,300 crore ($2.3 billion) post-QIP, Zomato plans to boost its market share and tackle the rising challenges in the highly competitive quick commerce industry.