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In a strategic decision to hold onto and retain talent, food tech giant Zomato has launched an Employee Stock Option Plan worth Rs 328 crore (approximately $39.5 million) under the Foodie Bay Employee Stock Option Plan 2014. The board of directors in a meeting at Zomato has approved the same, according to the regulatory filing accessed through the National Stock Exchange. It is the second step of a series of actions by Zomato as part of its zomato ongoing growth strategy to further strengthen its workforce and engage employees through rewarding ownership opportunities.
Zomato’s latest announcement for the ESOP scheme is another strategic step forward in its journey towards enhancing employee motivation and bringing both the interests of the company and of employees together on the long journey of growth.
Zomato Ongoing Growth Strategy: Launch of Rs 328 Crore ESOP Plan to Retain Talent
END. Significantly, Zomato had earlier received the nod from shareholders for a stand-alone ESOP worth $458 million, raising the aggregate worth of its ESOPs to $796 million. All these efforts encapsulate the company’s long-term commitment toward an ownership and empowerment culture at the workplace with regard to the prime contributors, the employees, whose association is crucial for the spectacular success of the company.
The company reported a robust performance in the fiscal first quarter with revenue of 4,206 crore, growing 18.1% quarter on quarter. The company also reported profits of Rs 253 crore during the same period and in this regard, avowed the operational resilience and strategic acumen to navigate the competitive landscape of the food tech industry. Indeed, Zomato’s strong financial performance portrays its market capitalization potential for exploitation of opportunities and sustainable value creations for its stakeholders.
With the share price presently at Rs 276 crores as on 04th Oct 2024, 11.50 AM with a market capitalization of Rs 2,44,000 crores or$29 billion, the valuation takes on the prospects and faith of investors in the product of its business model and its growth and its ability to constantly create value in this dynamic food tech industry. It enjoys impressive market capitalization and reflects its status as an industry leader with more scope for growth and expansion.
Parallelly, its competitor Swiggy has readied its IPO. The food delivery startup has filed draft papers to raise Rs 3,500 crore through a fresh issue. The IPO is also a harbinger of the intense competition and the constantly changing dynamics of space that the players are trying to capitalize on, with increasing market share to be capitalized on by the growing demand for the online food delivery service. Rivalry between Zomato and Swiggy only goes to show how vibrant and dynamic this sector could continue to remain as innovation and growth.
In fact, in this sea of change, one of its co-founders and chief people officer Akriti Chopra has recently left the organization. The other former co-founders Pankaj Chaddah, Gaurav Gupta, Mohit Gupta, and Gunjan Patidar have also exited the company, which suggests a leadership transition. In such cases, these changes do not derail the direction of the company toward achieving operational excellence, fostering innovation, and generating value for customers and stakeholders.
Briefly, the new ESOP plan of Rs 328 crore that Zomato has announced indicates its focus on talent building, greater employee engagement, and revenue growth primarily through performance rewards. Great financial performance, good market capitalization, and other initiatives taken by Zomato are part of its zomato ongoing growth strategy, indicating the company heading toward market opportunities, industry challenges, and keeping the growth momentum strong in an already very competitive food tech landscape.
