Announcement to Shareholders
Zomato has officially rebranded itself as Eternal, marking a significant shift in its business strategy. Founder Deepinder Goyal announced in a letter to shareholders that the company’s Board of Directors has approved this name change. Shareholders are now expected to approve this transition, after which key updates will follow.
Once finalized, the corporate website will change from zomato.com to eternal.com, and the stock ticker will also reflect the new identity. The rebranding is a part of a broader transformation where Eternal Limited will oversee four major businesses:
- Zomato – The primary food delivery platform that will continue its restaurant partnerships.
- Blinkit – The quick-commerce arm focusing on fast grocery and essentials delivery.
- District – A live events and entertainment business tapping into new consumer experiences.
- Hyperpure – A B2B kitchen supplies platform for restaurant owners.
Official Communication to Exchanges
Zomato formally informed stock exchanges about its rebranding decision, highlighting that the Board of Directors had approved the name change to Eternal Limited. This change reflects the company’s vision to expand beyond food delivery and enter multiple high-growth industries.
Why the Name Change?
The decision to rename Zomato to Eternal stems from its ambition to move beyond just food delivery. With Blinkit rapidly growing in the quick-commerce segment, District expanding into live events, and Hyperpure strengthening restaurant supply chains, Zomato needed a name that better represents its future vision.
The name “Eternal” symbolizes the company’s goal of creating a long-lasting, diverse, and innovative ecosystem that extends into multiple business categories.
New Eternal Logo
The rebranding also includes a new Eternal logo, which represents growth, adaptability, and innovation. The logo reflects the company’s long-term vision and expansion beyond food delivery.
Key Businesses Under Eternal
Zomato – The Core Food Delivery Business
Despite the rebranding, Zomato remains the central food delivery service under Eternal. The platform will continue to maintain its strong restaurant partnerships while exploring new innovations in delivery services.
Blinkit – The Fast-Growing Quick-Commerce Platform
Blinkit has become a key revenue driver, offering instant grocery and essentials delivery. With consumers increasingly preferring quick deliveries, Blinkit is expanding aggressively across cities.
District – Entering the Live Events Market
Eternal’s District venture aims to tap into the live events and entertainment sector. With growing demand for ticketed events and experiences, District is expected to become a major part of the company’s future revenue streams.
Hyperpure – Strengthening Restaurant Supply Chains
Hyperpure provides high-quality kitchen essentials to restaurants. By offering a dedicated supply chain, Eternal is creating a one-stop solution for restaurant businesses.
Financial Performance and Market Impact
The company’s financial performance has seen fluctuations in recent quarters. In Q3 2024, profits declined by 57%, dropping to 590 million rupees, compared to 1.38 billion rupees the previous year.
Despite this, Eternal’s revenue grew 64%, reaching 54.05 billion rupees. Blinkit played a crucial role in this growth, with its revenue more than doubling year-over-year.
The market response has been mixed. While analysts appreciate the expansion, some investors remain concerned about profitability in the quick-commerce space.
Challenges with Restaurant Partnerships
One of the biggest concerns with Eternal’s expansion into quick-commerce is the tension between Blinkit and restaurant owners.
- The introduction of Blinkit’s Bistro app, which delivers 15-minute meals from dark kitchens, has raised concerns among restaurant partners.
- Many restaurants fear that customers may shift towards quick-commerce food options, reducing demand for traditional dining.
- Increased reliance on aggregator platforms like Eternal means restaurants must offer more discounts, which reduces their profitability.
This shift in business model could lead to further negotiations and conflicts between Eternal and restaurant owners in the future.
Future Expansion Plans
Eternal is focusing on long-term growth across its various businesses. Key priorities include:
- Scaling Blinkit further to dominate the quick-commerce sector.
- Expanding District, making it a strong player in live events and ticketing.
- Strengthening Hyperpure, ensuring restaurants have access to high-quality kitchen supplies.
With these expansions, Eternal aims to become an all-encompassing consumer tech company, not just a food delivery platform.
Zomato’s founder Letter regarding company rebranding
| Share Market updates | Click Here |