A year ago, the food tech sector was booming. Funds were plentiful, investors were upbeat, and a new company seemed to be coming up every minute. Cut to a year later, and things aren’t quite so rosy. There have been murmurs of overvalued companies, and investors are being more circumspect with their cash. One sector that has been particularly hard hit is the food tech industry.
Zomato’s deal with hyper-local delivery company Pickingo appears to be in trouble. Two months ago, the company had announced an investment in Gurgaon-based Pickingo, which would’ve seen Zomato own a 10% stake in Pickingo. But the plans appears to be on hold after recent developments, reported Economic Times.
All’s not well at Zomato. Weeks after the company had announced that it was laying off 10% of its workforce in an apparent restructuring, it has emerged that for the first time in 5 years, the company is falling short of its sales targets. And Deepinder Goyal, the 32 year CEO, is not pleased.
Trouble is brewing in the food tech industry. After food delivery TinyOwl fired xxx employees, and food delivery app Dazo shut down last week, and Zomato has now annouced that it will be laying off 300 employees, or 10% of its workforce.
Zomato’s been expanding its influence in the food business. From starting Whitelabel, which is a software product for restaurants, to having its own delivery service, Zomato has been taking on uncharted territory over the past year. But when it launched Zomato Book, its restaurant booking service, and announced that it wanted “to ensure that we are the first in the market”, Dineout wasn’t pleased.
Zomato has raised $60m in a fresh round of funding led by Temasek Holdings. Temasek Holdings is an investment company owned by the Government of Singapore. Incorporated in 1974, Temasek owns and manages a net portfolio of S$266 billion, mainly in Singapore and Asia. Existing investor Vy Capital also participated in this round.
In the latest in the series of changes to be the last word on restaurants, Zomato has launched a technology platform called ‘White Label’ that enables restaurants to launch custom-branded native mobile apps, and bridge the gap between them and their customers.
Zomato, like all major companies, conducts regular surveys to get a sense of the pulse of its workforce – to see if employees are content, and discover what their grievances are. On this survey was an innocuous question – On a scale of 1 to 10, how likely are you to refer a friend at Zomato?
The average score the company received was 3.5.
Zomato, which had acquired food listing website Urbanspoon for $60 million earlier this year, has officially announced that it’s shutting the website. All users which will attempt to log on to UrbanSpoon will now to redirected to the Zomato.
Organizations take great care in building up a solid reputation over the years with great products, impeccable service and fostering an inclusive and harmonious work culture. However, at times, the actions of one or a few employees can cause immeasurable damage to the entire company. We profile employees who their company probably regrets hiring.