Zomato expands ESOP pool, allots 1.2 crore stock options to eligible employees

Deepinder Goyal-led food tech giant Zomato has announced a major expansion of its employee stock ownership plan (ESOP), allotting nearly 1.2 crore stock options worth approximately Rs 328 crore to its eligible employees.

According to a regulatory filing submitted on October 2, 2024, the company's board approved the grant of 1,19,97,768 stock options under two schemes: the Foodie Bay ESOP 2014 and the Zomato ESOP 2021.

Notably, the equity shares that will be allotted after the exercise of the stock options will not be subject to lock-in, the filing showed.

Ongoing efforts to retain and attract talent

The move is not Zomato's first ESOP expansion this year. In August 2024, the company had already allotted more than 35 lakh equity shares.

Earlier in the year, Zomato also received shareholder approval to introduce the Zomato ESOP 2024 plan, under which 18.26 crore stock options will be made available to employees. These development is part of Zomato's broader strategy to retain top executives and attract talent, especially from global startups. 

With competition from its industry rival Swiggy, which is preparing for its public listing, Zomato is positioning itself to offer competitive compensation packages.

Zomato’s financial performance in 2024

The expansion of the ESOP pool comes after Zomato's strong financial performance in the first quarter of FY25. The company reported a consolidated net profit of Rs 253 crore, marking a significant year-on-year (YoY) growth.

Revenues also surged by 74% YoY to Rs 4,206 crore, driven largely by the growth in its quick commerce vertical, Blinkit.

As of October 4, 2024, Zomato shares were trading at Rs 276, giving the company a market capitalization of around Rs 2.44 lakh crore (approximately $29 billion).