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Zomato CEO Deepinder Goyal has voluntarily decided to forgo his annual remuneration of Rs 3.5 crore until the end ofFY26
Zomato CEO Deepinder Goyal (Photo Credits: X)
Zomato CEO Deepinder Goyal has voluntarily decided to forgo his annual remuneration of Rs 3.5 crore until the end of the financial year 2026 (FY26), extending his original decision by an additional two years. This move was revealed in the company’s Qualified Institutional Placement (QIP) documents.
Initially, in FY21, Goyal had announced that he would waive his salary for 36 months, until the end of FY24. However, his latest decision means he will continue to forgo his salary until March 31, 2026. The official document stated, “In letters dated March 24, 2021, and April 1, 2024, addressed to our board, Deepinder Goyal voluntarily waived his salary from April 1, 2021, to March 31, 2026.”
Despite this, Goyal will continue to fulfill his duties as Managing Director and CEO of Zomato. He will also remain eligible for variable pay, the amount of which will be determined by the board at a later date.
It’s worth noting that Goyal holds a 4.18 per cent stake in Zomato, valued at over Rs 10,000 crore based on the stock price at the close of trading on November 25. His shares have significantly appreciated, with Zomato’s stock rising by more than 140 per cent year-to-date, reaching Rs 277.35 per share by 1 p.m. on November 26.
As of 1 p.m. on November 26, Zomato’s market capitalization stands at Rs 2,45,243 crore (around $28.8 billion). In comparison, its recently-listed competitor Swiggy has a market cap of Rs 99,845 crore (around $11.8 billion).
Zomato Shares Surge
On November 25, Zomato’s stock surged by up to 6 per cent in early trading, driven by two key developments: its inclusion in the 30-stock Sensex, marking a first for a new-age company, and the approval of its Rs 8,500 crore ($1 billion) Qualified Institutional Placement (QIP).
Zomato has set a floor price of Rs 265.91 per share for the QIP, which represents a discount of about 4% from its recent trading price. The company may offer a further 5% discount on the floor price, depending on final consultations with its bankers, as stated in exchange filings.
The Gurugram-based company has received shareholder approval to raise $1 billion to fend off increasing competition from players like Zepto and Swiggy. Morgan Stanley is the lead banker for the QIP. While Zepto raised $1.35 billion earlier this year in just five months, Swiggy went public with a $1.35 billion IPO earlier this month.
Once the fundraising is completed, Zomato will have around Rs 19,300 crore ($2.3 billion) in cash reserves. This comes at a time when rivals, particularly Zepto, are aggressively expanding to capture market share through new dark stores and increased cash burn.
Although Zomato initially indicated that the funds raised from the QIP would be used to strengthen its balance sheet, the company now plans to allocate significant portions to marketing and expanding Blinkit, its quick commerce arm, which currently leads the market ahead of both Zepto and Swiggy.
Of the Rs 8,500 crore ($1 billion) that Zomato aims to raise, Rs 2,137 crore ($250 million) will be allocated for setting up and operating dark stores and warehouses. Additionally, Rs 2,492 crore will be directed toward advertising, marketing, and branding initiatives across its business segments.
The company also plans to spend Rs 1,769 crore on enhancing its tech and infrastructure capabilities, with the remaining funds earmarked for general corporate purposes, according to the offer document.