Zomato Becomes Eternal:A Strategic Shift in Business Identity
In a significant move, foodtech giant Zomato has announced a change in its company name to Eternal Limited. This decision reflects the company’s evolving business strategy as its quick commerce arm, Blinkit, emerges as a major growth driver.
Why the Name Change?
Zomato’s shareholders recently approved a special resolution to rename the company as Eternal Limited. Over 99% of the votes favored the decision, while only 0.25% opposed it. Despite the corporate name change, Zomato’s popular food delivery app and brand identity will remain the same.
The company’s CEO, Deepinder Goyal, mentioned in a recent letter that the name ‘Eternal’ has been in internal use since Zomato acquired Blinkit. He explained that the change aims to reflect the company’s growing business portfolio, which now includes:
- Zomato (food delivery)
- Blinkit (quick commerce)
- Hyperpure (B2B venture)
- District (events platform)
The Growing Role of Blinkit
Blinkit, acquired by Zomato in 2022 for $568 million, has grown rapidly, significantly contributing to Zomato’s revenue. In the Q3 FY25 financial report, Zomato reported total revenue of INR 5,405 crore, with Blinkit accounting for INR 1,399 crore.
While Zomato’s food delivery business recorded a 17% year-on-year (YoY) growth, Blinkit’s Gross Order Value (GOV) surged by 120% YoY, reaching INR 7,798 crore. This rapid expansion has led analysts to predict that Blinkit could surpass Zomato’s core food delivery business in revenue by FY30.
Financial Strategy and Future Plans
To boost its revenue further, Blinkit is modifying its commission model. Previously, it charged sellers a 3-18% fixed commission, but starting March 13, Blinkit will adopt a variable commission model based on product prices.
Meanwhile, analysts at Bernstein forecast that Blinkit will achieve EBITDA breakeven by Q3 FY26, while its competitor Swiggy Instamart is expected to reach this milestone by Q1 FY28.
Impact on Stock and Market Position
Following the announcement, Zomato’s shares witnessed a slight dip of 2.21%, closing at INR 212 on the BSE. Despite this, Zomato maintains a strong market capitalization of $23.6 billion.
Conclusion
Zomato’s transition to Eternal Limited marks a strategic shift to highlight its growing ventures beyond food delivery. With Blinkit rapidly expanding and other business arms showing promise, this move reflects Zomato’s ambition to diversify and establish itself as a broader tech-driven platform.
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