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Zomato: ETSA 2024 | Had to clear out senior Zomato executives who lost the drive post-IPO: Deepinder Goyal

 October 6, 2024  Leave a Comment on Zomato: ETSA 2024 | Had to clear out senior Zomato executives who lost the drive post-IPO: Deepinder Goyal
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Food delivery giant Zomato’s chief executive Deepinder Goyal said that after the company’s initial public hearing (IPO) in 2021, he had to fire a lot of senior executives as they became ‘complacent’.

“The IPO was good and the business was doing what it was doing, and a lot of people made a lot of money for the first time in their lives, and these are competent people,” Goyal said at the Economic Times Startup Awards 2024.

He also added, “There was no work happening inside the organisation for a while.” On being asked about the situation now, Goyal said, “I think we are a high trust team now.”

After going public, Zomato’s shares initially underperformed, which affected its market capitalisation. This was further exacerbated by global market instability. However, things have changed for the better now, with Zomato now becoming a favourite stock with investors. According to the BSE, Zomato’s stock has yielded 121% returns year-to-date (YTD).

Goyal also spoke about Zomato’s relatively late entry into the rapidly growing quick commerce sector, expressing his surprise at the sector’s exponential expansion. “I didn’t think it would grow so much,” he added.

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On the regulatory scrutiny, the Zomato CEO said that quick commerce is not eating into the market share of kiranas. “Blinkit is not even affecting companies like Dmart. We are more or less eating into the share of ecommerce players like Amazon and Flipkart, as well as modern retail,” he added.

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