Food-tech Zomato secures ESOP worth $39 Million
The food-tech major, Zomato has brought into a new ESOP plan which is worth more than Rs 328 crore (approximately $39.5 million) under the Foodie Bay Employee Stock Option Plan 2024.
The regulatory filing had been accessed through the NSE shows and Zomato’s board has received the approval to grant 1,19,97,768 ESOP options.
This comes three months after the company received shareholder’s approval for a distinct ESOP plan which is worth $458 million. After following that approval, the total value of Zomato’s ESOP has reached to $ 796 million.
Zomato’s efforts to attract and retain talent
In the duration of the first quarter of the ongoing fiscal year, the firm reported 4,206 crores of revenue which has registered an 18.1% quarter-by-quarter growth with the gains standing at Rs 253 crore during the same period.
According to the media, the quarterly earnings of Zomato disclosed the plans for an ESOP pool of almost 18.26 employee stock options valued to Rs 4,000 crore as per the current market rates.
Company’s current trading value
The firm is as of current trading at Rs 276 crore as of 4th October 2024 (11.50 AM) with a total market capitalization of Rs 2,44,000 crore ($29 billion).
Every stock option is convertible into one fully paid-up equity share of face value of RS 1 each and can be exercised within 10 years of the granting of options or 12 years post Zomato’s public listing which is later under its ESOP schemes.
Notably, the equity shares that will be allotted after the exercise of the stock options will not be subject to lock-in, the filing showed.
Competitors plan
In the meantime, the competitor of the firm, Bengaluru-based Swiggy is organizing for its public market debut, where it is having draft initial public offering (IPO) papers filed to secure Rs 3,500 crore through a new issue.
In addition to this, other public companies, inclusive of Nykaa, PB Fintech and TBO Tek have also expanded their ESOP pools in 2024, according to the report issued.
Zomato’s Financial Performance of current year- 2024
The expanding of the ESOP pool comes after the firm’s strong financial performance in the first quarter of financial year 2024. A consolidated net profit of Rs 253 crore is reported by the company making a remarkable year-by-year growth.
The revenues also surged by 74% to Rs 4,206 crore, which is largely driven by the growth in its quick commercial vertical, Blinkit.
As of 4th October 2024, the firm shares were trading at Rs 276, providing the company a market capitalization of approximately Rs 2.44 lakh crore (almost $29 billion).
Read about the company’s valuation of Rs 890 crore at- Zomato Grants 40 Mn ESOPs Valued At Nearly Rs 890 Cr: Report (bwdisrupt.com)
Company’s situation
Simultaneously, the firm is experiencing major shifts in its leadership following the company’s good-bye and departure of its co-founder and Chief People Officer- Akriti Chopra.
She joins hands with other former co-founders, for instance, Gaurav Gupta, Pankaj Chaddah, Mohit Gupta, and Gunjan Patidar, who have also exited the firm recently.
Conclusion
The food-tech major, Zomato has brought into a new ESOP plan which is worth more than Rs 328 crore (approximately $39.5 million) under the Foodie Bay Employee Stock Option Plan 2024.
The regulatory filing had been accessed through the NSE shows and Zomato’s board has received the approval to grant 1,19,97,768 ESOP options.
In the duration of the first quarter of the ongoing fiscal year, the firm reported 4,206 crores of revenue which has registered an 18.1% quarter-by-quarter growth with the gains standing at Rs 253 crore during the same period.
According to the media, the quarterly earnings of Zomato disclosed the plans for an ESOP pool of almost 18.26 employee stock options valued to Rs 4,000 crore as per the current market rates.
The expanding of the ESOP pool comes after the firm’s strong financial performance in the first quarter of financial year 2024. A consolidated net profit of Rs 253 crore is reported by the company making a remarkable year-by-year growth.
For more such articles, please visit- Indian Startups Secure $4 Billion In Funding In Q3! – 24 Khabre