Zomato Unveils New ESOP Worth $39 Mn

Zomato, the food tech startup, has announced a new employee stock ownership plan (ESOP) valued at Rs 328 crore (approximately USD 39.5 million) under its Foodie Bay Employee Stock Option Plan 2014. The company’s board has approved the grant of 11,997,768 ESOP options.

This news comes just three months after Zomato received shareholder approval for a separate ESOP plan worth USD 458 million. Following that approval, the total value of Zomato's ESOPs reached USD 796 million.

In its latest financial report, Zomato recorded revenues of Rs 4,206 crore for the first quarter of the current fiscal year, marking an 18.1 per cent growth quarter-on-quarter, with profits of Rs 253 crore during the same period. As of 4 October 2024, Zomato's shares are trading at Rs 276, giving the company a total market capitalisation of Rs 244,000 crore (around USD 29 billion).

Meanwhile, Zomato's competitor, Swiggy, is preparing for its public market debut, having filed draft initial public offering (IPO) papers to raise Rs 3,500 crore through a fresh issue. Other public companies, including PB Fintech, Nykaa, and TBO Tek, have also expanded their ESOP pools in 2024.

Zomato is currently undergoing significant leadership changes, highlighted by the recent departure of co-founder and chief people officer Akriti Chopra. She joins other former co-founders, including Pankaj Chaddah, Gaurav Gupta, Mohit Gupta, and Gunjan Patidar, who have also exited the company recently.