[Update] Zomato’s Food Delivery Biz CEO Quits, Eternal Says Part Of Internal Reshuffle

Update | April 24, 2:20 PM

Hours after a report surfaced that the chief executive of Eternal’s (formerly Zomato) food delivery business, Rakesh Ranjan, stepped down from his role, the company clarified that he has not tendered his resignation and still continues to be part of the leadership team.

“At Eternal Group, internal reshuffling of the leadership team is considered a standard practice as part of the company’s ongoing efforts to optimise organisational effectiveness,” the startup said in a statement.

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Original | April 24, 1:20 AM

The chief executive of Eternal’s (formerly Zomato) food delivery business, Rakesh Ranjan, has reportedly stepped down from his role after two years.

Sources told the Economic Times that Ranjan’s departure as CEO is part of an ongoing reshuffle exercise within the company. Ranjan, however, reportedly continues to serve at the foodtech major in a “different capacity”.

“There’s an internal reshuffle underway, and as part of that, Ranjan is stepping down from his position as food delivery CEO. Deepinder (Goyal) will be overseeing the vertical until a permanent replacement is finalised,” a source reportedly said.

As per the report, the company plans to appoint a new successor in the next few months and is considering a “few internal and external names” for the post.

Inc42 has reached out to the company for a comment. The story will be updated based on the responses.

An alumnus of Netaji Subhas Institute of Technology and ISB, Ranjan joined the foodtech major as the global business head of Zomato Gold in 2017. He rose through the ranks to become the CEO of food delivery in June 2023. Prior to Zomato, he also worked at companies like Boston Consulting Group and PwC.

Top-Level Reshuffle At Zomato

The development comes amid a wave of senior-level exits at the company. Just a few weeks ago, Rinshul Chandra resigned from the position of chief operating officer (COO) of Eternal’s food ordering and delivery business to “pursue new opportunities and passions”.

In September 2024, Akriti Chopra, who had been with the company since 2011, resigned from her position as cofounder and chief people officer. A few months later, in December 2024, Zomato’s business finance head Hemal Jain resigned after a six-year-long stint to “explore other opportunities”.

Earlier this month, Eternal reportedly laid off nearly 600 employees from its customer support team due to AI-driven automation and quick commerce wars.

The Drag In Food Delivery Biz

The exits also come at a time when the broader food delivery space is witnessing a slowdown. Even though almost all its verticals, including quick commerce, going out and B2B supply, each witnessed over 90% revenue growth, Eternal’s core food delivery segment’s adjusted revenue grew a mere 17% to INR 2,413 Cr in Q3 FY25 from INR 2,062 Cr in Q3 FY24.

Even though Q3 is typically a stronger quarter for consumption due to the festive season, Zomato (the food delivery business) saw a muted 17% year-on-year (YoY) growth in gross order volume (GOV) to INR 9,913 Cr in Q3 FY25, lower than the company’s expectation of a 20%+ YoY growth.

“Currently we are going through a broad-based slowdown in demand, which started during the second half of November. Notwithstanding the current slowdown, we are positive about a recovery soon and remain confident of the long-term outlook of 20%+ yearly GOV growth in the business given the strong fundamentals,” Ranjan said in the company’s Q3 shareholder letter.

Combined with the slowing food delivery business and intense competition in quick commerce, Eternal’s consolidated net profit declined 57.2% to INR 59 Cr in Q3 FY25 from INR 138 Cr in the same quarter last year.

Shares of Eternal closed Wednesday’s (April 23) trading session 0.74% higher at INR 239.20 on the BSE.