Zomato, a leading food tech giant, has announced a significant shift in its corporate identity. The company will now be known as Eternal Ltd. The board has approved this decision, and the stock ticker will soon reflect the new name. This rebranding marks a significant milestone as the company expands its business beyond food delivery.
Why is Zomato Changing Its Name to Eternal?
Zomato's decision to rename itself Eternal Ltd stems from its expanding business model. Over the years, Zomato has ventured beyond food delivery, and its leadership believes the current name no longer represents the company's diverse operations. CEO Deepinder Goyal explained the reasoning behind this transformation:
"When we acquired Blinkit, we started using 'Eternal' internally to distinguish between the company and the brand/app. Today, with Blinkit, I feel we are there. We would like to rename Zomato Ltd., the company (not the brand/app), to Eternal Ltd."
This move indicates that the company now views itself as a broader platform encompassing multiple business verticals rather than just a food delivery service.
What Businesses Will Eternal Comprise?
Eternal Ltd will operate as an umbrella organization housing four major business divisions:
1. Zomato
2. Blinkit
3. District
4. Hyperpure
While the Zomato app will retain its brand name, the stock symbol and the official corporate entity will transition to Eternal Ltd.
Deepinder Goyal's Vision for Eternal
CEO Deepinder Goyal highlighted that the name 'Eternal' signifies the company's ambition to create a lasting impact in the tech-driven commerce space. He stated:
"Eternal is a powerful name, and to be honest, it scares me to my core. It is a tall order to live up to because ‘Eternal’ carries both a promise and a paradox. This isn’t just a name change; it is a mission statement. A reminder etched into our identity that we will endure — not because we are here, but because we need to get there."
The decision aligns with the company's long-term strategy to remain resilient, adaptable, and innovative in the face of changing consumer demands.
Financial Performance and Business Outlook
The rebranding announcement coincides with Zomato’s Q3FY25 earnings report, which revealed a 57% year-on-year drop in profit after tax (PAT). Key financial highlights include:
- Revenue: ₹5,404 crore, marking a 64% increase YoY, compared to ₹3,288 crore in Q3FY24 and ₹4,799 crore in Q2FY25.
- PAT: ₹59 crore, down from ₹138 crore in Q3FY24 and ₹176 crore in Q2FY25.
Despite the revenue growth, the slowdown in food delivery demand has impacted overall profitability. Rakesh Ranjan, CEO of Zomato’s food ordering and delivery business, acknowledged this trend, stating:
"Currently, we are going through a broad-based slowdown in demand which started during the second half of November."
Summary
The rebranding of Zomato to Eternal Ltd marks a pivotal shift in itsidentity, signalling its evolution beyond food delivery into a diversified tech-driven enterprise. While the Zomato app will retain its name, the corporate entity and stock ticker will transition to Eternal, reflecting its expanding business portfolio, including Blinkit, District, and Hyperpure. CEO Deepinder Goyal envisions this change as a long-term commitment to adaptability and resilience in the dynamic commerce landscape. However, the rebranding comes amid financial challenges, with a notable drop in profitability despite strong revenue growth. This strategic move underscores the company’s ambition to build an enduring legacy in the industry. The Board has approved for the name, the company will await for the Greenlight from the Shareholders for the name change
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