Zomato is possibly staring at big expansion plans after it goes public this month, raising Rs 9,375 crore in its ongoing IPO. It is likely that food delivery behemoth Zomato may step up its hiring post the IPO success, London-based data analytics and consulting firm GlobalData said. “The company is likely to hire more and script a new chapter in its business expansion plans to remain competitive in the Indian online food delivery market,” Ajay Kumar Thalluri, Business Fundamentals Analyst at GlobalData, said.
As of December 31, 2020, Zomato had 3,469 employees, with almost 50 per cent of them working with sales and sales enablement functions. But in order to meet the new growth prospects as well as strengthen its talent requirement to comply with regulatory procedure, the hiring in Zomato could increase. According to Thalluri, spending is bound to increase on attracting and retaining employees at a time when it is going to take on the global giants in the food delivery space.
To put it in perspective, Zomato’s US counterpart DoorDash Inc went public in December 2020, and after it was listed with NYSE, the company saw increased hiring activity. GlobalData’s Job Analytics database indicated that new job postings by DoorDash were 139 in December 2020 and in the next three months, by March 2021, the company had listed 283 new jobs. Similarly, Zomato could see a similar trend with new listings across different functional departments.
The company’s focus will also be to hire legal and accounting staff to improve the effectiveness of disclosure controls and procedures as a listed company. Hires with appropriate experience and technical accounting knowledge are expected to be preferred,” said Thalluri. With more capital infused with the company, the focus now lies on strengthening the product and technology team, which is expected to eventually result in retention of existing talent and hiring more people on board.
news source :- financial express