The parent company of Zomato, Eternal Group, released a clarification on Thursday following reports that Rakesh Ranjan, CEO of Zomato's food delivery company, was stepping down as part of a leadership shake-up. According to the company, Ranjan has not resigned and remains part of the leadership team.
The clarification was made after a media report indicated that Ranjan was resigning amidst slowing growth and rising competition, especially from competitors such as Swiggy. The report further stated that Zomato co-founder and CEO Deepinder Goyal was set to hold charge of the food delivery business temporarily until a replacement was identified.
In reply, Eternal Group stressed that leadership transitions are a normal aspect of the firm's attempt to enhance organizational effectiveness. They confirmed that no substantive internal information was made available formally, and all significant updates will be announced to the stock exchanges as per the rules.
The clarification came voluntarily so as not to cause any confusion, since the company had guaranteed investors and the general public that Ranjan is still in office and has not resigned.
Zomato's food ordering business, the largest revenue as well as profit contributor for the company, has performed well. In the December 2024 quarter, the company reported a gross order value (GOV) of Rs 9,913 crore, which was a 2% quarter-on-quarter and a 17% year-on-year increase.
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