Food tech giant Zomato’s founder and Chief Executive (CEO) Deepinder Goyal will donate all proceeds from the Employee Stock Ownership Plan (ESOPs).
He said in a note that at last month’s average share price, these ESOPS are worth around $90 million (Rs 700 crore).
Zomato’s Future Foundation will cover the education of a maximum of two children across all Zomato delivery partners and it will be Rs 50,000 per child per year on a certain service quality benchmark) that Zomato has been in the fleet for more than five years. And if the delivery partner stays with the Zomato company for ten years, the price will increase to Rs 1,00,000 per child every year.
The Foundation will also provide higher education scholarships to exceed these limits for children with high performance and potential.
It will also assist the families of its delivery partners (irrespective of service length) with educational and livelihood support if they are involved in serious situations like accidents while on the job.
“To reap the most benefit for ZFF, and protect the interests of our shareholders, I do not intend to liquidate all these shares immediately, but over the next few years. For the first year, I will liquidate less than 10% of these Esops towards this fund, “said, Deepinder Goyal, founder, and CEO of Zomato.
“This is just the start. As and when needed, we will keep expanding and re-evaluating the scope of this Foundation to benefit our ecosystem further. I am especially pumped for what this foundation will do for our delivery partner’s children – I believe that education is the one and the only thing that can give them a chance to build life much better than their previous generations”, he added.
Goyal further said that Future Foundation will accept donations from other Zomato employees and look into other fundraising avenues and it also plans to set up an independent governance board for the foundation.
Zomato’s mission statement is “better food for more people.” Since our inception in 2008, they have grown tremendously, both in scope and scale – and emerged as India’s most trusted brand during the pandemic, along with being one of the largest hyperlocal delivery networks in the country.
Today, Zomato represents a wide range of cultures through its diversified 5000+ team members, 3.5 lakh+ delivery partners, and our biggest collection of the finest restaurant partners. They are grateful that their business is able to provide upward social and economic movement for millions of households – of their delivery partners, as well as restaurant staff. They think of all of us as one big family! Their passion is driven by purpose and they take immense pride in their initiative ‘Feeding India’, one of India’s largest not-for-profits working to ensure that nobody in India goes to bed hungry.
As of now, Feeding India provides over 150,000 nutritious meals to the underprivileged every day. In April 2020, Feeding India ran one of the largest food distribution drives in the world during the first wave of COVID, and distributed 78 million meals to daily wagers across the length and breadth of the country. During the second wave of COVID-19, Feeding India was again the first to act. They were able to source over 9,000 oxygen concentrators and distributed them for free to government hospitals across the country. This helped save millions of lives during one of the worst humanitarian crises faced by India in recent times.
They’re innovating hard to make last-mile delivery carbon-neutral, eliminate the use of plastic packaging, create meaningful opportunities in the gig economy, and feed our country’s ever-growing appetite for high-quality, affordable, and hygienic food, one delivery at a time!