Zomato Rejig: Food Delivery Firm Issues Clarification On CEO Rakesh Ranjan's Exit - Read Full Document

Eternal Group (Zomato) has clarified that the news about Zomato Food Delivery CEO Rakesh Ranjan stepping down is incorrect.

In a statement, the company said, “As on date, there has been no resignation tendered by Mr. Rakesh Ranjan and he still continues to be part of the leadership team.”

What Company Said?

Earlier media reports claimed that Rakesh Ranjan, chief executive officer of Zomato's food delivery business, will be stepping down from his current position. Zomato founder and group CEO Deepinder Goyal will lead food delivery operations for the coming months.

They added that internal reshuffling is a routine process aimed at improving organisational efficiency and that any material developments will be shared with the stock exchanges as per regulatory guidelines.

"At Eternal Group, internal reshuffling of the leadership team is considered a standard practice as part of the Company's ongoing efforts to optimise organisational effectiveness. The Company maintains that such internal communications are not of a material nature and any developments, if material and in accordance with applicable regulatory requirements, will be duly communicated to the stock exchange(s) in a timely and transparent manner," the company added in a statement.

Also Read: Zomato Puts A Lid On Foreign Ownership: Caps It At 49.5% To Stay Truly Indian

Who Is Rakesh Ranjan?

Ranjan was made the CEO in June 2023 and has spent nearly eight years with the Gurugram-based company. While Zomato was already the market leader when Ranjan took over, it has built on its lead under his leadership over the past months. The food delivery space, however, continues to evolve as Swiggy and Zomato see their market share see-sawing from time to time, and a clear winner is yet to emerge.

While a leadership rejig is a regular exercise at Zomato, the management change comes at a time when the wider food delivery industry is witnessing a slowdown.

"Currently we are going through a broad-based slowdown in demand which started during the second half of November," Rakesh Ranjan, former CEO, food ordering and delivery business, Zomato, had said in the company's shareholder letter on January 20 while announcing quarterly results.

Zomato Facing Slowdown

Zomato, which is the leader in the food delivery space, is not the only one witnessing a slowdown. Its rival, Swiggy, has also seen a slowdown in line with peers. Amid a broader slowdown and some loss of market share, Zomato has now made two major leadership changes in its food delivery business.

Deepinder Goyal has replaced Rakesh Ranjan as the unit's CEO, and earlier this month, chief operating officer (food delivery) Rinshul Chandra also stepped down from his position. The shares of Eternal (formerly known as Zomato) were trading up 0.63 per cent at Rs 237.70 apiece on the BSE on April 24.