New Delhi: Online food aggregator and delivery platform Zomato’s co-founder and chief executive officer Deepinder Goyal will be donating around $90 million (nearly Rs 700 crore) from vested ESOPs to Zomato Future Foundation to help fund the education of children of its delivery partners.
On Friday, the Zomato scrip hit a 52-week low of Rs 57.65. The stock is down 62% from its all-time high levels that it hit in November last year.
Sharing how he planned to utilise the ESOPs, Goyal said, “I am donating all the proceeds from these ESOPs (net of taxes) towards the Zomato Future Foundation (ZFF). The ZFF will cover education of up to two children of all Zomato delivery partners, up to ₹50,000 per child per annum on actuals (above a certain service quality benchmark) who have been on our fleet for more than five years.”
He further said the amount will go up to ₹1 lakh per child per annum if the delivery partner completes 10 years with the company. However, “Service thresholds of 5/10 years will be lower for women delivery partners. We will also have special programmes for girl children and introduce ‘prize money’ if a girl completes 12th grade, as well as her graduation,” he added.
It will also provide higher education scholarships over and above these limits for children with higher performance and potential.
The Foundation will also assist families of its delivery partners (regardless of service term) with educational and livelihood support if they are involved in terrible circumstances such as 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,” Goyal said.
Goyal further stated that the Future Foundation will accept donations from other Zomato employees and will look at other fundraising avenues. It also plans to set up an independent governance board for the Foundation.