Zomato’s co-founder and CEO, Deepinder Goyal, has achieved billionaire status following an extraordinary rise in the company’s stock price, which soared by over 350% in just 2 years.
The foodtech giant’s shares reached an all-time high of INR 232 on the Bombay Stock Exchange (BSE), reflecting a remarkable milestone for both the company and its stakeholders.
Deepinder Goyal’s newfound billionaire status is primarily driven by his significant ownership of 36.95 crore shares, or 4.1% stake, in Zomato, valued at approximately INR 8,400 crore ($1 billion) based on current market prices.
Since hitting a low point in July 2022, Zomato’s stock has witnessed an extraordinary five-fold increase, bolstered by improving financial metrics and achieving profitability milestones.
The surge in Zomato’s stock price to its 52-week high of INR 232 was partly attributed to the company’s recent decision to raise its platform fee to INR 6 per order across key markets, including Delhi and Bengaluru.
Zomato’s platform fee initially started at INR 2 per order and has since been incrementally increased twice this year alone.
In January, the fee was raised to INR 4 per order across major markets, followed by a 25% hike to INR 5 per order in April.
These adjustments have evidently contributed to sustaining the company’s bullish stock performance, which has surged nearly 170% over the past year.
Moreover, Zomato recently allocated over 4.07 crore stock options to its employees under various Employee Stock Option Plans (ESOPs), including the Foodie Bay ESOP 2014 and the Zomato ESOP 2021.
This initiative not only aims to incentivize and retain talent but also underscores Zomato’s commitment to sharing its success with employees.
In its latest financial quarter (Q4 FY24), the company reported a notable net profit of INR 175 crore, supported by operating revenues totaling INR 3,562 crore.
The company’s foray into quick commerce services through Blinkit has also contributed significantly to its revenue streams, positioning Zomato as a formidable player in the rapidly evolving foodtech sector.
Looking ahead, there is a high probability of continued bullish momentum for Zomato, supported by its solid financial performance, strategic market expansions, and innovative business models.
With Deepinder Goyal’s newfound billionaire status emblematic of Zomato’s meteoric rise, the company appears poised to capitalize further on India’s burgeoning digital economy and consumer shift towards online food delivery and quick commerce services.
