Another high-profile exit from Zomato as Co-founder Mohit Gupta resigns; Details inside

File Photo

New Delhi: Mohit Gupta, a co-founder of Zomato, has left the company after working there for four and a half years. This is the third high-profile departure from the leading meal delivery startup in recent weeks. Rahul Ganjoo, the head of Zomato's new projects and former head of food delivery, announced his resignation earlier this week. Siddharth Jhawar, the head of the company's Intercity Legends service, also announced his resignation a week earlier.

In 2018 Gupta became the head of meal delivery at Zomato. After Ganjoo became the CEO of food delivery in 2021, he was promoted to co-founder to take charge of future enterprises. Gupta served as the chief operating officer of the travel website Makemytrip prior to joining Zomato. (Also Read: 

The meal delivery company has suffered in the public market this year due to a collapse in IT stocks, as its stock price has dropped more than 50 percent from its peak of Rs 162 on the BSE. Additionally, as the company has developed, the growth of its food delivery business has slowed. Quarterly revenues have increased by only 22 percent from Rs 5,410 crore in Q2 of FY21 to Rs 6,631 crore in Q2 of FY22.

In comparison, from Q2 of FY21 to Q2 of FY22, quarterly revenues increased by 158 percent. There might, however, be a silver lining. In Q2, marketing costs decreased by 23 percent year over year to Rs 300 crore, and delivery costs decreased by 28 percent to Rs 283 crore.

It would appear that the operating leverage and scale effects that investors have been waiting to see are finally starting to manifest themselves given that the company's revenue has increased by 62 percent over this time. Zomato's net loss for the period decreased from Rs 434.9 crore in the same quarter last year to Rs 250.8 crore. In the meantime, operating revenue surged 62.20 percent to Rs 1,661.3 crore.