Introduction
Zomato is a popular food-tech start-up based in Gurugram, India that was founded in 2008 by Deepinder Goyal and Pankaj Chaddah. The company started as an online platform that provided restaurant reviews for users to help them make informed decisions before dining out. Over the years, Zomato has evolved into a platform that connects users to restaurants, offers food delivery services, and provides online ordering options.
History
Zomato started as a small start-up that offered restaurant reviews to users in Delhi, India. The company was founded by two IIT Delhi alumni, Deepinder Goyal and Pankaj Chaddah, who were motivated by their passion for food and the desire to provide a useful service to people looking for good dining experiences. The company gradually expanded to other cities in India and eventually went global, becoming one of the largest restaurant discovery platforms in the world.
Funding and Investors:
Zomato has raised over $914 million in funding in multiple rounds from various investors. The company’s latest funding round, which was Series J, happened in 2019, and it raised around $150 million. Some of the notable investors who have invested in Zomato include Ant Financial, Temasek Holdings, Info Edge, and Sequoia Capital.
Company Performance:
Zomato has been performing well over the years and has grown in size and revenue. In India, Zomato has become the leading food delivery service, with a market share of around 50%. The company also expanded globally and operates in multiple countries, including the United States, United Kingdom, Australia, and the United Arab Emirates. Apart from food delivery services, Zomato has also entered into other businesses such as table reservations and event ticketing services.
Layoffs
In May 2020, Zomato announced that it was going to lay off 520 employees, which comprised around 13% of its workforce. The layoffs were attributed to the economic downturn caused by the COVID-19 pandemic, which had affected the food and hospitality industry significantly. The company stated that it had taken this step after analyzing multiple factors and that it was necessary to ensure the long-term success of the company.
The layoffs were spread across various departments and functions, and the affected employees were given a severance package that included a minimum of three months of salary. The company also offered to provide outplacement support to help the affected employees find new job opportunities.
Statement from Company Stakeholders:
Deepinder Goyal, CEO of Zomato, in a statement regarding the layoffs, said, “This decision has been incredibly hard for us to make, but we believe that it is essential to safeguard the future of our company. We have tried our best to provide support to our employees during these challenging times, and we hope that they will understand our situation.”
Conclusion
In conclusion, Zomato has been one of the leading food-tech start-ups in India and has expanded globally over the years. The company has raised substantial amounts of funding and has been performing well in its multiple businesses. The layoffs announced in May 2020 were unfortunate but necessary to mitigate the challenges caused by the COVID-19 pandemic. Zomato has been transparent and supportive throughout this process and is committed to safeguarding the future of the company.
