Zomato Cannot Stem the Losses Amidst Latest CTO Departure

Zomato said on Monday that Gunjan Patidar, co-founder and chief technology officer is out for good.

Patidar’s exit follows a string of several other key executive departures at Zomato, including its chief marketing officer, chief financial officer, and head of delivery. The company has faced challenges in recent months, including increased competition from rivals such as Swiggy and Uber Eats, as well as declining profits and a falling share price.

In a statement, Zomato CEO Deepinder Goyal said Patidar had been “instrumental in building Zomato’s technology team and platform”, and thanked him for his “significant contribution” to the company. He added that Zomato will continue to focus on “building our technology and data capabilities to enable us to serve our customers better”.

Patidar, who had been with Zomato since its founding in 2008, said in a statement that he was “proud” of what he and the team had achieved at the company, but that it was “time for me to move on to new challenges and opportunities”.

Zomato’s share price has fallen sharply in the past year, with the company’s valuation dropping from around $3 billion in January 2020 to around $1.2 billion currently. The company has also struggled with profitability, posting a loss of $293 million in the fiscal year ending March 2020.

Despite these challenges, Zomato remains one of India’s leading food delivery firms, with a strong presence in more than 500 cities across the country. The company plans to continue expanding its services, including its subscription-based Zomato Gold program and its recently launched Zomato Pro, which offers exclusive discounts and benefits to customers.

In September, it was announced that Zomato co-founder Pankaj Chaddah would be leaving the company. This news came as a surprise to many, as Chaddah had been with the company since its inception in 2008 and played a key role in its growth and success.

According to Zomato CEO Deepinder Goyal, Chaddah had been planning to leave the company for some time and had informed the board of his decision back in April. Goyal stated that Chaddah had been feeling burnt out after working on the company for over a decade and wanted to take a break to “travel and figure out his next adventure.”

Chaddah’s departure is just the latest in a series of exits by Zomato co-founders. In 2016, co-founder Alok Chandra left the company to pursue other ventures. And in 2018, co-founder Lokesh Vaswani stepped down as the CEO of Zomato’s food delivery business.

Chaddah’s departure is a significant loss for Zomato, as he was instrumental in building the company from the ground up. He played a key role in the company’s expansion into new markets, and was responsible for establishing partnerships with key players in the food industry.

Despite his departure, Chaddah will remain a shareholder in the company and will continue to serve on the board of directors. Goyal stated that Chaddah will continue to be involved in the company’s strategic decisions and will provide guidance as needed.

Despite the loss of a key co-founder, Zomato remains a formidable player in the food delivery industry. The company has a strong presence in over 10 countries and serves over 15 million users per month. It has also raised over $400 million in funding from investors such as Ant Financial and Sequoia Capital.

However, the company faces stiff competition from other players in the industry such as Swiggy and UberEats. These companies have also raised significant amounts of funding and are aggressively expanding into new markets.

In addition to the competitive landscape, Zomato also faces challenges from changing consumer preferences. With the rise of food delivery apps, many consumers are opting for the convenience of having meals delivered to their doorstep rather than dining out. This shift has led to a decline in restaurant foot traffic and a decrease in revenue for many establishments.

Despite these challenges, Zomato remains committed to its mission of “making dining seamless” for users. The company is constantly innovating and introducing new features, such as a subscription service that offers unlimited food delivery for a monthly fee.

The departure of Pankaj Chaddah is a significant loss for Zomato, but the company is well-positioned to continue its growth and success in the competitive food delivery industry. With a strong team in place and a commitment to innovation, Zomato is poised to continue its journey of making dining seamless for users around the world.