Zomato Is Now Eternal: Foodtech Giant Gets Shareholders’ Nod To Change Name

Foodtech major Zomato has received the approval from its shareholders to change its name to Eternal Limited.

In an exchange filing, Zomato said that its shareholders passed a special resolution to approve the proposal to change the name of the company and consequent alteration in the Memorandum of Association and Articles of Association of the company. 

Over 99% of votes were cast in favour of the resolution, while 0.25% were against it.

The move signals a strategic shift as Zomato’s quick commerce arm Blinkit has become a significant driver of growth.

In a shareholders’ letter last month, Zomato cofounder and CEO Deepinder Goyal said Zomato started using ‘Eternal’ internally after acquiring Blinkit to distinguish between its corporate identity and the food delivery app. 

“We also thought that we would publicly rename the company to Eternal, the day something beyond Zomato became a significant driver of our future. Today, with Blinkit, I feel we are there. We would like to rename Zomato Ltd., the company (not the brand/app), to Eternal Ltd,” Goyal then said.

According to Goyal, the name change would better reflect the company’s expanding business portfolio, which includes food delivery under Zomato, Blinkit, business-to-business venture Hyperpure, and events app District.

Zomato acquired quick commerce startup Blinkit in 2022 in an all-stock deal worth $568 Mn.

The consumer tech giant, which has a market cap of $23.6 Bn, also plans to change its stock ticker to Eternal from Zomato. Meanwhile, the brand app and the Zomato app will remain unchanged.

Notably, Blinkit has seen strong growth over the last year or so amid rising popularity of quick commerce. Zomato reported an operating revenue of INR 5,405 Cr in the December quarter of the fiscal year 2024-25 (Q3 FY25), of which Blinkit accounted for INR 1,399 Cr.

While Zomato’s food delivery business’ gross order value rose 17% year-on-year (YoY) to INR 9,913 Cr in Q3 FY25, Blinkit’s GOV skyrocketed 120% YoY to INR 7,798 Cr during the quarter under review. Analysts at Bernstein estimate that Blinkit will have greater revenue than Zomato’s food delivery business by FY30.

Bernstein expects Blinkit to achieve EBITDA breakeven by Q3 FY26 and its rival Swiggy Instamart to achieve adjusted EBITDA breakeven by Q1 FY28. 

This comes amid reports that Blinkit is revamping its commission model to improve its take rate. While the quick commerce platform currently charges sellers and brands selling on the platform a fixed commission fee of 3-18%, it will charge them a variable commission based on the selling price of items, effective March 13.

The name change comes at a time when Zomato is facing a slowdown in its food delivery business. At 2:47 PM, shares of the company were trading 2.21% lower at INR 212 apiece on the BSE.