Deepinder Goyal, CEO of Zomato, has Extended the Salary Waiver Till 2026

Nitin Konde, Varun Bhardwaj

Nov 27, 2024 — 3 min read

Zomato CEO Deepinder Goyal Extends Salary Waiver Until 2026

Zomato revealed in its qualified institutional placement (QIP) documentation that its founder and CEO, Deepinder Goyal, has chosen to put his salary on hold for an extra two years, until March 31, 2026. The food delivery giant's FY24 annual report stated that Goyal has previously waived his pay for 36 months, starting on April 1, 2021. With this most recent extension, he will be unpaid for a total of five years.

According to the QIP document, Deepinder Goyal has voluntarily waived his salary for a period beginning on April 1, 2021, and ending on March 31, 2026, in letters dated March 24, 2021, and April 1, 2024, addressed to Zomato's Board. During this time, he will continue to carry out his responsibilities as managing director and chief executive officer.

Asking for INR 20 Lakh Donation From the Employee

As of right now, Goyal owns a 4.2% share in Zomato, which is valued at about INR 10,000 crore. In just two years, Zomato's share price has increased by more than 300%.

Goyal recently made waves for hiring a "hungry" Chief of Staff for the company through a job posting on his X account. The person should be hungry with empathy and common sense, according to the post. Goyal first stated that the candidate would have to contribute INR 20 lakh to Zomato's Feeding India charity as part of the employment qualifications, but he later clarified that this criterion was merely meant to filter out candidates.

How Zomato Plans to Use its QIP Funds?

In order to set up Blinkit's darkish stores and warehouses, Zomato has set aside INR 2,137 Cr. As of September 30, it had 791 dark-coloured stores spread throughout 48 Indian cities. It plans to open more dark stores in order to expand into new Indian cities and grow its existing community across the country. According to the corporate, the darkish retailer's common built-up space of 3,100 square feet will be worth INR 58 lakh. In addition, Zomato's total common operating expenses for running a darkish shop come to INR 12 lakh.

Zomato plans to spend INR 2,492 Cr on activities related to model construction and promotion. It anticipates spending INR 2,492 Cr on promotional actions by March 31, 2028, at the latest, and intends to increase its advertising expenditures in the near future.

Zomato would invest INR 1,769 Cr to build its tech capabilities and cloud infrastructure in order to maintain and upgrade the expertise infrastructure as needed to meet business needs. The remaining funds may be set aside for essential business operations.

Zomato Closes Stores in Qatar

Zomato also disclosed in a change submission that it was closing its operations in Qatar. When Zomato Web LLC (ZIL) submitted its pink herring prospectus (RHP) in July 2021, the company claimed that its step-down subsidiary had no active enterprise operations and was under liquidation.

According to the RHP, on December 28, 2016, ZIL joined the Qatar Monetary Centre Corporations Registration Workplace as a restricted legal responsibility firm under the Corporations Rules. It worked for a number of knowledge-based businesses, including desk reservations, online restaurant ordering, and commercial enterprises. The closing legal responsibility and amount charged to restate the consolidated monetary claim for ZIL was INR 2.3 Lakh, according to Zomato's RHP.