SUMMARY
Zomato’s delivery and dining out businesses alongside Blinkit, Hyperpure and Feeding India will be a part of the Eternal umbrella
The company is likely to also float a new logo for the same
The move comes at a time when experts have envisioned lower loss and increased revenue for the company in Q1 FY23 results
Zomato founder and CEO, Deepinder Goyal, has reportedly floated the idea of a parent entity since the brand now houses three different verticals – Zomato, BlinkIt and Hyperpure.
In an update posted on the company’s Slack channel, Goyal writes that it is now at a stage of life where Zomato is maturing from running (more or less) a single business to running multiple large companies.
Reportedly, Zomato’s delivery and dining out businesses alongside Blinkit, Hyperpure and Feeding India will be a part of the Eternal umbrella and the company is likely to also float a new logo for the same.
While Goyal had been the CEO of Zomato Ltd, with Blinkit’s Albinder Dhindsa and Hyperpure’s Vishal Kumar joining the businesses, the verticals have their own leaders. Even Zomato’s food business is primarily headed by Mohit Gupta.
“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.
While Inc42 couldn’t independently verify the message, multiple sources have confirmed that the development is in preliminary stages.
The Eternal umbrella may include Reliance Retail-style investment entity (which invests in other startups) since the foodtech backs fitness platform Curefit, hyperlocal discovery business Magicpin and logistics firm Shiprocket.
A Zomato spokesperson was not immediately available for comment.
The report comes at a time when Zomato is likely to announce its Q1 FY23 results in an investor meeting today (August 1, 2022). Experts expect Zomato’s loss to narrow down and revenue to rise, compared to the previous year’s corresponding quarter.
The stock of the company had also hit an all-time low of INR 41.5 in the last few weeks, touted as a result of BlinkIt’s acquisition by Zomato. While Jefferies and Kotak Mahindra have posted a positive outlook for the startup’s future, finance expert Ashwath Damodaran has further hammered down the price of Zomato on Dalal Street to INR 35.
