Restructuring ‘not material’, doesn’t require disclosure, Zomato tells BSE
Online food ordering platform Zomato informed the BSE on Thursday that an internal communication regarding a change to its internal structure and the appointment of a chief executive for each of its businesses was “not substantial” and did not call for a stock exchange disclosure. Zomato informed the BSE that news reports about its restructuring were based on an internal message communicated with staff by CEO Deepinder Goyal.
“The message’s sole purpose was to convey the Zomato group’s leadership structure’s goal as it expands. Zomato considers the internal communication to be immaterial and exempt from disclosure requirements “The business stated. Please be assured that we strive to uphold the greatest quality of corporate governance and that we will, as and when necessary, make all essential disclosures as required by applicable laws.
Goyal reportedly informed staff in a memo on August 1 that Zomato had internally relaunched as “Eternal,” a company that would house its many companies. Albinder Dhindsa currently oversees the rapid commerce division Blinkit, and Mohit Gupta, a co-founder of Zomato, is in charge of the company’s food-delivery operations. Ramit Goyal is the company’s business-to-business restaurant supplier company Hyperpure’s head of product and growth.
Goyal had stated on the company’s Slack channel that “we are transitioning from a company where I was the CEO to a place where we will have multiple CEOs running each of our businesses (Zomato, Blinkit, Hyperpure, Feeding India), acting as peers to each other and working as a super-team with each other toward building a single large and seamless organization.” Similar inquiries had been made by analysts at Zomato’s investor call on Tuesday.
Zomato’s chief financial officer Akshant Goyal stated on the call that the company is “looking at reorganizing itself as we get into a place where there is more than food delivery as a business that we need to run.” “There is nothing to worry about on that front, but I do believe that at some point in the future, a public declaration would help you understand the reasoning for this. Internal restructuring is being done to align the team, the incentives, and the organizational structure with the next three to four years of business growth “.