Food delivery firm Zomato's founder and CEO Deepinder Goyal has donated Rs 700 crore ($90 million), the entire proceeds he received from monetising a portion of his employee stock option plans (ESOPs), towards education of children of delivery partners.
In an internal communication to employees, Goyal said he will donate the entire amount (net of taxes) to Zomato Future Foundation.
The foundation will provide Rs 50,000 per annual (per child) for education of up to two children of all delivery partners who have been on its fleet for more than five years and Rs 1 lakh per annum if the partner has completed 10 years with the company.
"Service thresholds of 5/10 years will be lower for women delivery partners. We will also have special programs for girl children and introduce 'prize money' if a girl completes 12th grade, as well as her graduation," he wrote in his email.
Over and above these criteria, the foundation will provide higher education scholarships for children with higher performance and potential educational and livelihood support for the families of all delivery partners (irrespective of service tenure) who meet with unfortunate circumstances such as accidents while on the job.
The amount was raised when Goyal vested a portion of the ESOPs granted to him right before the company went public in July 2021.
"This is just the start. As and when needed, we will keep expanding and re-evaluating the scope of this foundation to benefit our ecosystem further. 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 per cent of these ESOPs towards this fund," he wrote.
In the future, the foundation will accept donations from other Zomato employees and will explore other fundraising opportunities. The company will set-up an independent governance board for the foundation.
"I am especially pumped for what this Foundation will do for our delivery partner's children - I believe that education is the one and only thing that can give them a chance to build a life much better than their previous generations. I also hope that some of these kids grow up to leading the charge at various businesses that we build within Zomato over time, in addition to starting new companies that change the future course of our country," he concluded.
Zomato did not respond to BT's queries on the initiative.
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