Zomato Denies Reports of Food Delivery CEO Rakesh Ranjan's Resignation
The parent company of Zomato, Eternal Group, rejected recent media reports claiming that Rakesh Ranjan, CEO of Zomato's food delivery arm, has resigned. In a stock exchange filing, the group cleared the air that Ranjan has not tendered any resignation and is still a part of the leadership team.
"We would like to clarify that, as on date, there has been no resignation tendered by Mr. Rakesh Ranjan, and he continues to be a member of the leadership team", the company added.
Clarifying speculations, Eternal Group underscored that internal reshuffling of leadership positions is a normal practice intended to improve organizational effectiveness. "Internal reshuffling of the leadership team is viewed as a normal practice within Eternal Group as part of the Company's continuous efforts to optimise organisational effectiveness", the filing stated.
The company also said that there have been no material internal developments that need to be disclosed. If any do arise, they will be disclosed to the stock exchanges in accordance with regulatory standards. The clarification, it said, was given voluntarily to prevent unnecessary confusion.
The recently-debunked reports had indicated that Ranjan, who became CEO of the food delivery business in May 2023, was leaving amid growing competition from Swiggy and worry over slowing expansion. They further asserted Zomato Founder Deepinder Goyal would take the division on a temporary basis.
Food delivery business of Zomato continues to be the company's major revenue and profitability driver. In Q3 FY24, the segment generated gross order value (GOV) of ₹9,913 crore, up 2% sequentially and 17% year-on-year.
