Zomato has decided to rollback salary cuts and to give thrice the amount to employees who took voluntary salary cuts.
Online food aggregator Zomato has decided to rollback salary cuts and to give thrice the amount to employees who took voluntary salary cuts as the company reported stellar performance in FY20 as compared to the preceding fiscal. “For everyone who took voluntary salary cuts, we are rewarding them for their commitment to the company, and they will get 3x the amount of their voluntary deduction in the form of ESOPs (at zero exercise price),” Deepinder Goyal, co-founder, Zomato said in a tweet on Friday. The unicorn company has also said that it has re-instated any salary cuts that were rolled out to its employees since April. “In fact, we are paying back all deductions made to people who faced mandatory salary cuts at Zomato,” Deepinder Goyal said.
In May 2020, Zomato laid off 520 employees or 13% of its total workforce in a huge retrenchment exercise as novel coronavirus pandemic cracked businesses. However, the company has now reported revenue growth of 105% in FY20 as compared to FY19 while its costs grew by only 47% in the corresponding period. “Moving our business towards profitability was a core focus for us in FY20 and we made significant progress along that journey,” the company said.
Zomato said that while coronavirus has impacted business, but called it a “blip” when a company aims for the next 100 years. “COVID-19 has positively impacted the health of our business – we seem to have gained 2-3 years along this vector. In July 2020, we estimate our monthly burn rate to land under $1 million, while our revenue should land at around 60% of pre-COVID peaks ($23 million per month),” it said. Zomato now expects a recovery over the next 3-6 months while it looks to maintain tight control on costs and profitability.
Our revenue in FY20 grew by 105% as compared to FY19 while the costs grew by only 47% in the corresponding period. Moving our business towards profitability was a core focus for us in FY20 and we made significant progress along that journey.
Meanwhile, mentioning the achievements Zomato in the last fiscal, the food delivery firm added that it acquired Uber Eats India business in January 2020 which helped the firm propel to market
leadership in this competitive space. Zomato further said that the transition of users and merchants from Uber Eats India to Zomato was swift, and so well coordinated by both the teams that it was able to transfer and retain 97 per cent of the combined gross merchandise value on the Zomato app.