Zomato had to fire complacent executives after IPO: Deepinder Goyal
Zomato's CEO, Deepinder Goyal, has revealed that he was compelled to dismiss several senior executives following the company's initial public offering (IPO) in 2021. He attributed this decision to a perceived complacency among these individuals. The revelation was made during his address at the Economic Times Startup Awards 2024 event.
Goyal cited lack of productivity post-IPO
Goyal expressed that following the successful IPO, many employees experienced significant financial gains for the first time. However, he noted a subsequent decline in productivity within the organization. "There was no work happening inside the organization for a while," Goyal stated. This period of inactivity prompted his decision to let go of certain senior executives who had become complacent after the IPO.
Zomato's performance and market position
Despite an initial underperformance of its shares and a dip in market capitalization after going public, Zomato has since rebounded. The company's stock is now favored by investors, yielding a substantial return of 121% year-to-date (YTD) as per BSE data. This turnaround indicates a recovery from the earlier challenges faced by the food delivery giant in the stock market.
Goyal comments on Zomato's entry into quick commerce
Goyal also discussed Zomato's relatively late entry into the fast-growing quick commerce sector. He expressed surprise at the sector's rapid growth, stating, "I didn't think it would grow so much." Despite this late entry, Goyal remains optimistic about Zomato's position in this expanding market.
