In a strategic move to reflect its diversified business operations, Zomato Limited has announced a rebranding of its parent company to “Eternal Limited.” This change, approved by the company’s board of directors, signifies Zomato’s evolution beyond its core food delivery services.
Expansion into Multiple Verticals
Eternal Limited will encompass four primary business segments:
- Zomato: The well-known food delivery platform.
- Blinkit: A quick-commerce unit specializing in rapid grocery deliveries.
- District: A live events business facilitating event discovery and ticketing.
- Hyperpure: A kitchen supplies venture providing ingredients and essentials to restaurants.
This rebranding reflects the company’s strategic shift to integrate these diverse services under a unified corporate identity.
Clarification on Branding
CEO Deepinder Goyal has clarified that while the parent company’s name will change to Eternal Limited, the consumer-facing brands and applications will retain their existing identities. The Zomato app, for instance, will continue to operate under the same name, ensuring continuity for its user base.
Rationale Behind the Rebranding
In a letter to shareholders, Goyal explained that the decision to rename the parent company was driven by the significant growth and potential of Blinkit, the quick-commerce platform. He emphasized that when a venture beyond Zomato becomes a substantial driver of the company’s future, it warrants recognition at the corporate level. The acquisition of Blinkit in mid-2022, despite initial investor skepticism, has proven to be a pivotal move, contributing to the company’s expansion into the quick-commerce sector.
Market Implications
The rise of quick-commerce platforms like Blinkit and Swiggy’s Instamart has transformed consumer shopping habits in India. This shift has prompted traditional retailers, including Reliance Industries’ JioMart, Amazon, and Walmart’s Indian operations, to develop their own quick-commerce services to remain competitive.
Conclusion
The rebranding to Eternal Limited marks a significant milestone in Zomato’s journey, reflecting its evolution into a multifaceted enterprise. By uniting its diverse business ventures under a single corporate identity, the company aims to streamline its operations and reinforce its commitment to innovation in the food and quick-commerce industries.