Zomato Founder and CEO, Deepinder Goyal, has reportedly raised the idea of a parent entity since the brand now takes up 3 distinct divisions – Zomato, BlinkIt and Hyperpure.
Goyal claims that Zomato has reached a point in its development where it is transitioning from managing (more or less) a single company to managing numerous sizable companies in an update posted on the company’s Slack channel.
According to reports, Zomato’s delivery and dining out operations will join Blinkit, Hyperpure, and Feeding India under the Eternal banner. The company is also reportedly considering a new logo for the same.
Goyal had been the CEO of Zomato Ltd., but now that Albinder Dhindsa of Blinkit and Vishal Kumar of Hyperpure have joined the companies, each of the verticals as its CEO. Even Mohit Gupta is mostly in charge of Zomato’s food division.
“We are transitioning from a company where I was the CEO to a place where we will have multiple CEOs running each of our businesses – all acting as peers to each other, and working as a super team with each other towards building a single large and seamless organisation. Starting today, we are going to call this larger organisation ‘Eternal’, he wrote in the note seen by Moneycontrol.
Since the food tech sector supports the fitness site Curefit, the hyperlocal discovery company Magicpin, and the logistics company Shiprocket, the Eternal umbrella may also contain an investment vehicle akin to Reliance Retail (which invests in other businesses).
The information is released at the same time as Zomato is scheduled to present its Q1 FY23 results at an investor meeting today (August 1, 2022). Comparing the current quarter to the same period last year, experts predict that Zomato’s loss will decrease and revenue will increase.
Moreover, In recent weeks, the company’s shares have also fallen to an all-time low of INR 41.5, which was strongly linked to Zomato’s purchase of BlinkIt. The future of the firm has been given a bright outlook by Jefferies and Kotak Mahindra, but
financial expert Ashwath Damodaran has further reduced the cost of Zomato on Dalal Street to INR 35.