Zomato will absorb around 280 Paytm employees, CEO Deepinder Goyal says
Aug 23, 2024, 16:21 IST
Whenever a company is acquired by another, a common question that arises is what will happen to the employees of the company that is being acquired? Recently, Zomato made headlines with its acquisition of Paytm's entertainment and ticketing business for Rs 2,048 crore. The all-cash deal, announced late Wednesday, marks a significant step in Zomato's efforts to broaden its horizons beyond food delivery and into the 'going-out' business.
Deepinder Goyal, the CEO of Zomato, sent a letter to the company's shareholders, expressing optimism about the acquisition while acknowledging the challenges that lie ahead. He also revealed that Zomato will be absorbing around 280 Paytm employees.
According to a report in ET, in his letter to shareholders, Goyal said that the company is betting heavily on the team that will be onboarded as part of this acquisition.
Unlike previous acquisitions, such as Uber Eats India and Blinkit, where Zomato had established relationships with the teams involved, this deal introduces a new set of dynamics.
"This acquisition is our first major acquisition where we are acquiring a team that we do not know very well," the Zomato CEO said. He also stressed on the importance of cultural integration, noting that the main driver of success would be the seamless assimilation of the new team into Zomato's "flattish culture."
In the same letter, Goyal also talked about the potential for growth in this segment, pointing out that the success of the business would largely depend on Zomato's ability to introduce new use-cases such as shopping and staycations.
He said, "We believe, over the next decade and beyond, going-out experiences will continue to grow strongly in lockstep with overall growth in lifestyle and consumption."
One of the key elements of this acquisition is the impending launch of Zomato's new app, District, which is expected to go live in the coming weeks. This app will centralize various lifestyle services, including dining, movies, live events, and more, under a single platform. Initially, services will continue to be offered on the existing apps, such as Zomato, Paytm, Insider, and TicketNew. However, over time, these services will be migrated to District, creating a more streamlined and cohesive user experience.
Goyal expressed confidence in the company's ability to manage the transition, highlighting that Zomato has roped in experienced team members, Rahul Ganjoo and Pradyot Ghate, to lead the execution. These two Zomans were instrumental in the successful transition of Uber Eats India to Zomato, and Goyal believes they will be key to ensuring a smooth migration of customers to the new platform.
However, Goyal also acknowledged that some incentives might be required to encourage customers to move from the older apps to District. He described this as a marginal financial risk, which the company would try to minimize as much as possible.
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Deepinder Goyal, the CEO of Zomato, sent a letter to the company's shareholders, expressing optimism about the acquisition while acknowledging the challenges that lie ahead. He also revealed that Zomato will be absorbing around 280 Paytm employees.
According to a report in ET, in his letter to shareholders, Goyal said that the company is betting heavily on the team that will be onboarded as part of this acquisition.
Unlike previous acquisitions, such as Uber Eats India and Blinkit, where Zomato had established relationships with the teams involved, this deal introduces a new set of dynamics.
"This acquisition is our first major acquisition where we are acquiring a team that we do not know very well," the Zomato CEO said. He also stressed on the importance of cultural integration, noting that the main driver of success would be the seamless assimilation of the new team into Zomato's "flattish culture."
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He said, "We believe, over the next decade and beyond, going-out experiences will continue to grow strongly in lockstep with overall growth in lifestyle and consumption."
One of the key elements of this acquisition is the impending launch of Zomato's new app, District, which is expected to go live in the coming weeks. This app will centralize various lifestyle services, including dining, movies, live events, and more, under a single platform. Initially, services will continue to be offered on the existing apps, such as Zomato, Paytm, Insider, and TicketNew. However, over time, these services will be migrated to District, creating a more streamlined and cohesive user experience.
Goyal expressed confidence in the company's ability to manage the transition, highlighting that Zomato has roped in experienced team members, Rahul Ganjoo and Pradyot Ghate, to lead the execution. These two Zomans were instrumental in the successful transition of Uber Eats India to Zomato, and Goyal believes they will be key to ensuring a smooth migration of customers to the new platform.
However, Goyal also acknowledged that some incentives might be required to encourage customers to move from the older apps to District. He described this as a marginal financial risk, which the company would try to minimize as much as possible.