The co-founder of Indian food delivery startup Zomato resigns just a year after the company went public | tech news

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Mohit Gupta, the co-founder of Indian grocery delivery start-up Zomato, has resigned after about five years at the restaurant aggregator and food ordering and delivery platform, the company announced on Friday.

The announcement comes three months after Nitin Savara stepped down as the company’s deputy chief financial officer. Gupta was the segment’s chief executive before being named co-founder in May 2020. He is credited with building Zomato’s grocery delivery operation from the ground up.

In a letter to employees, the company said Gupta was stepping down to pursue “unknown adventures”. However, the timing of his resignation is suspect given the company’s financial situation and development. Last week, Zomato reported a second-quarter loss even as the volume and value of its online orders increased.

We covered Zomato back in July last year, after Zomato became the first Indian unicorn tech startup to go public with a valuation of $12.2 billion. Its shares rose as much as 80% on the first day of trading on the Mumbai Stock Exchange. Zomato’s IPO price was initially set at Rs.76 per share.

But because of large institutional investors in the unicorn startup, the stock opened a 52.63% premium at Rs.116 per share, valuing the 13-year-old startup at US$12.2 billion (about Rs.910 billion). The stock ended the day about 65% above its asking price, giving the company a market value of about $13 billion.

Founded in 2008 by Pankaj Chaddah and Deepinder Goyal, Zomato provides restaurant information, menu and user reviews, as well as meal delivery options from partner restaurants in select cities. Zomato connects over 55 million users to restaurants in 24 countries.

Prior to the IPO, Zomato raised a total of $2.1 billion in 21 funding rounds from investors including Tiger Global, Temasek, Baillie Gifford, Kora, Luxor, Fidelity (FMR), D1 Capital, Baillie Gifford, Mirae, Steadview, and Ant Financial.

Just like Uber Eats, Zomato offers a detailed restaurant information search app that allows consumers to discover, rate and review restaurants, as well as build their own personal network of foodies for trusted recommendations.

We wrote about Zomato in 2020 after Uber sold its unprofitable and loss-making online food ordering business in India to local rival Zomato in exchange for a 9.99% stake. The sale helped Uber Eats cut its losses while still retaining a share of a market that is expected to be worth $15 billion by 2023.



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