Zomato co-founder Gaurav Gupta quits to ‘start a new chapter’, share prices drop momentarily

Gaurav Gupta(Image Source: India.com)

Gaurav Gupta, one of the top executives and the co-founder of food-delivery platform Zomato, has reportedly quit the company, said a report published in Moneycontrol

Zomato stock price, which had high an all-time high of Rs 152.75 Tuesday, momentarily came down after news reports of Gupta’s exit from the organisation surfaced online. The stock opened at Rs 145.10 on Tuesday morning and rose to Rs 152.75 before falling down to Rs 136.20 as reports of Gupta quitting the company came out. The stock has since then recovered and is currently hovering at Rs 145 levels. 

According to the sources quoted by Moneycontrol, Gupta’s exit was imminent because of an earlier fallout between him and Zomato founder Deepinder Goyal. 

Gupta had joined Zomato in 2015 as global head for advertising sales and then was promoted to COO role. In March 2019, he was made the co-founder of the company. 

Announcing his resignation in an internal mail, Gupta, who headed the supply at Zomato, said he is ‘starting a new chapter’ after six years at the food delivery platform, according to CNBC-TV18.

Gupta’s resignation came a day after foodtech unicorn Zomato closed down its neutraceuticals market. As per several reports, the decision to shut down its nutraceutical business was a part of the company’s strategy to extricate itself from low to moderately successful ventures, including the grocery delivery business, which was shuttered by the company from September 17. 

Zomato pulled the rug out of its grocery delivery service from September 17 chiefly due to gaps in order fulfilment leading to poor customer experience, marking its exit from the segment for the second time since last year.

It is worth noting that Gupta was responsible for the launch of the grocery and nutraceuticals businesses, which struggled for a while before Zomato finally decided to call it quits.

OpIndia Staff: Staff reporter at OpIndia