Zomato Appoints New CEOs for Food Delivery and Hyperpure Verticals
- ByStartupStory | May 20, 2023
Zomato, the foodtech major, has announced the appointment of three new top executives. Rakesh Ranjan will be the CEO of the food ordering and delivery business, Rinshul Chandra will be the COO of the same, and Rishi Arora will be the CEO of Zomato’s Hyperpure business vertical. These appointments will take effect on June 1, 2023, for a two-year period, according to an exchange filing by the company.
Just hours after revealing its financial results for Q4 FY23, Zomato announced the appointment of its new top executives. According to a statement from the startup, Rakesh Ranjan, Rinshul Chandra, and Rishi Arora have been associated with Zomato and Blinkit for over five years, serving in different capacities.
“We believe that a change of leadership every now and then with capable people at the helm brings new perspectives to the business enabling it to evolve faster. Such leadership changes are also great for people development, and we are confident that our people strategy will set us up for success even decades from now,” the statement added.
The recent appointments should be noted in the context of the significant departure of several high-ranking executives from Zomato in the past year. In September, Nitin Savara resigned as the chief financial officer, followed by a series of exits in November. These departures included Rahul Ganjoo, the head of new initiatives, Siddharth Jhawar, the vice president of global growth, and cofounder Mohit Gupta. Furthermore, in January of this year, Gunjan Patidar, another cofounder and former CTO, also stepped down from the company.
During Zomato’s Q3 FY23 results In February, MD and CEO Deepinder Goyal said, “…sometimes, for some people, the distance between their form (their mindset and skill set) and the company’s context becomes such that it is necessary to take a break from each other.”He had then emphasised that Zomato was not looking to fill the positions of CTO and head of food delivery.
Highlighting a positive aspect, Goyal recently mentioned that over 50% of the top fifty executives have dedicated seven years of service to Zomato. Today, alongside the release of its Q4 FY23 results, Zomato disclosed a notable decrease in its employee benefit expenses compared to the previous quarter, contributing to a narrower loss. Specifically, the company’s employee benefit expenses declined from INR 395 crore in Q3 FY23 to INR 339.8 crore in the reported quarter.
Benefiting from the growth of its Blinkit and Hyperpure business verticals, Zomato recorded a net loss of INR 187.6 crore in Q4 FY23, a decrease from INR 346.6 crore in Q3 FY23. The company’s financial performance has also shown year-on-year improvements. Notably, Zomato reported that its business, excluding quick commerce, achieved positive adjusted EBITDA in the quarter.
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