Zomato stock holds steady as cofounder Gaurav Gupta resigns; Exits grocery delivery service, Nutraceutical biz

The stock had hit a new 52-week high of Rs152.75 per piece earlier today.

Sep 14, 2021 02:09 IST India Infoline News Service

Zomato stock pulled back from their early gains and was trading in a volatile sentiment on Tuesday after the company's co-founder and Head of Supply, Gaurav Gupta steps down from his position. The company's stock began on the upside today's session as it exited the Nutraceutical business after the grocery delivery service.

At around 2.17 pm, Zomato was trading at Rs144.80 per piece up by 1.1% on Sensex.

The stock had hit a new 52-week high of Rs152.75 per piece earlier today after reports said that the company has pulled the plug from the Nutraceutical business. Last year, Zomato had commenced this business with health and fitness products.

It is being known that Zomato's exit from the Nutraceutical business is amid the government plans to get stricter over private label norms for marketplace businesses across the country.

Also, the company had recently shut down its grocery delivery service.

However, later on, Tuesday, the announcement was made that the co-founder Gaurav Gupta has resigned from the post.

Zomato's CEO Deepinder Goyal through his Twitter handler said, "Thank you, Gaurav Gupta, the last 6 years have been amazing and we have come very far. There's so much of our journey still ahead of us, and I am thankful that we have a great team and leadership to carry us forward."

Gupta in his resignation note to Zomato said that "I am taking a new turn in my life and will be starting a new chapter, taking a lot from this defining chapter of my life – the last 6 years at Zomato. We have a great team now to take Zomato forward and it’s time for me to take an alternate path in my journey. I am very emotional as I write this and don’t think any words can do justice to how I am feeling right now."

"I couldn’t have asked for more – I am so grateful for all the experiences I have had and thankful to all the folks around me for helping me become a much better person. I won’t be able to stay away from all of you and you will see me around and in action every once in a while," Gupta added. 

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