Zomato has welcomed back two former senior executives, Rahul Ganjoo and Pradyot Ghate, to spearhead innovative ideas for its Going-Out business. This move is part of Zomato’s broader strategy to diversify beyond its core food delivery segment.
Rahul Ganjoo, who previously served as head of new businesses and chief executive officer of food delivery, and Pradyot Ghate, a former vice-president, have rejoined Zomato to develop 0-1 ideas within the Going-Out vertical. This segment focuses on dining out, lifestyle, and entertainment experiences rather than the primary food delivery operations. Ganjoo departed Zomato in January 2023 after a tenure of over five years, while Ghate left in July 2023 after nearly a decade with the company.
“Both of them are pursuing 0-1 ideas in the Going-Out business, which is closer to dining out, lifestyle, and entertainment than the core food delivery segment. But, things change very quickly in Zomato. There’s no guarantee that what they are working on will eventually be launched,” commented a person closely associated with the company.
Zomato has not yet commented on the return of Ganjoo and Ghate or their specific roles. However, the company’s intent to enhance its Going-Out business was evident in June when it confirmed ongoing talks to acquire Paytm’s movie ticketing and events arm. The deal, valued between Rs 1,500 crore and Rs 2,000 crore, could significantly bolster Zomato’s position in the movie ticketing and events market.
In the March quarter (Q4 FY24), Zomato’s Going-Out segment saw impressive growth, with gross order value increasing by 207% year-on-year to Rs 1,069 crore, and adjusted revenue doubling to Rs 93 crore. Despite this, profitability in the segment declined. Experts believe the acquisition of Paytm’s movie ticketing business could help Zomato create an integrated loyalty program, cross-sell its food offerings, and enhance entertainment option discovery for users.
The rapid growth phase of food delivery appears to be tapering off, prompting Zomato and its rival Swiggy to invest heavily in the quick commerce sector. A strong focus on the Going-Out business is seen as a strategic move to drive long-term revenue growth.
Zomato founder and CEO Deepinder Goyal has emphasized the company’s dynamic culture and the value of senior leaders returning after exploring other opportunities. “Company building is not just about the journey of the business. It is also so much about its people’s personal journeys. Both these journeys take their own twists and turns,” Goyal stated.
Goyal also highlighted that several senior leaders have returned for second or third stints at Zomato, driving innovation and progress within the organization. “The entropy our people create in the organization by leaving and then coming back is fantastic, to say the least, and propels the organization forward.”
Some former Zomato executives have ventured into entrepreneurship. Mohit Gupta, once elevated to co-founder, has launched the omnichannel lifestyle brand Lyskraft, raising $26 million in a seed round led by Peak XV. Similarly, Gaurav Gupta, another high-profile executive and former co-founder, founded the healthtech startup Gabit, securing $9.5 million in seed funding from Norwest Venture Partners and angel investors like Amazon senior vice-president Amit Agarwal and Zomato’s Deepinder Goyal.
As Zomato continues to innovate and expand its business horizons, the return of seasoned leaders like Ganjoo and Ghate is expected to play a crucial role in shaping the company’s future.
