Renaming Zomato to Eternal drives home the multifaceted nature of business

Food delivery giant Zomato’s announcement that it was renaming the company to Eternal Ltd, which incidentally is also the market listed entity, is not just a simple rebranding exercise. It’s a calculated shift towards a future where food delivery becomes only a slice of the whole pie.

In a letter to Zomato’s stakeholders on February 6, Co-Founder and CEO, Deepinder Goyal, unveiled the plan to rename the holding company to Eternal. “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,” Goyal wrote in the letter.

This comes even as Zomato’s quick commerce arm Blinkit’s rapid growth outpaced that of its main food delivery business in the third quarter of FY25. The move to rebrand, thus, formalises a strategic realignment towards a multi-vertical future.

“They are no more just a food delivery business. Blinkit is growing rapidly, and it is expected to contribute a significant portion of the group’s revenue in next two to three years,” says Christy Joseph, equity research analyst at Geojit Financial Services.

Additionally, their diversification into other segments like the ticketing business has already turned Zomato into a multifaceted business entity. Hence, bringing all these under one umbrella could be seen as a pragmatic move.
 

BETTING BIG ON BLINKIT

The acquisition of Blinkit in an all-stock deal for Rs 4,447 crore in 2022 was not only a major turning point in its journey but also accelerated Zomato’s transformation. Starting as Foodiebay.com in 2007 and transforming into Zomato by the end of 2010, the company had already gained the momentum it needed to thrive for over a decade. “When we acquired Blinkit, we started using “Eternal” (instead of Zomato) internally to distinguish between the company and the brand/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,” Goyal told shareholders.

Under the renamed entity Goyal will now operate four key businesses – Zomato (food delivery and dine-in business), Blinkit (quick commerce), District, and Hyperpure. District is its ticketing business, currently offering tickets for cricket matches played in India, it is soon expanding into movies and live events. Hyperpure is its business-to-business division, where Zomato sources ingredients from producers and supplies to relevant business operators.
 

WINNING GAMBLE

In FY22, 81% of Zomato’s revenue was from the food delivery business, and 13% from Hyperpure, and no contribution from quick commerce. But in FY24, Blinkit’s contribution surged to 17% of its Rs 13,545 crore revenue, as its topline tripled year-on-year from Rs 806 crore in FY23 to Rs 2,301 crore in FY2024. And by the October-December FY25 quarter, Blinkit’s share further rose to 26%.

Goyal has been placing his bets on Blinkit’s growth for a while. In fact, it was the potential of the quick commerce business that motivated him to make the acquisition in 2022, even if it meant putting himself at risk. Despite its perceived high valuation and Zomato’s faltering market value post listing, the management decided to take the plunge.

Challenges, however, remain. As the group pushes for aggressive expansion, analysts believe its profitability may remain under pressure in the near-term.

“They have diversified well over the past few years. Now it is adding 1,000 dark stores, which in the long run may prove to be beneficial. But except the Zomato business, all other segments like Blinkit, Hyperpure or District are still not turning profits. That remains a concern,” says Joseph, adding that its overall growth story looks promising.

Experts view the lack of profitability as a short-term setback. With the business verticals now under the Eternal umbrella (pending shareholder and regulatory approvals), Motilal Oswal projects rapid growth. The topline is expected to surpass Rs 47,000 crore by FY27, up from Rs 13,000 crore, with a net profit exceeding Rs 4,700 crore within the next two years.
 

@arndutt