Zomato Biz To Have Multi-CEO Structure Under New Parent Organisation 'Eternal': Report Eternal will comprise four companies--Zomato, Blinkit, Hyperpure and Feeding India--which will be organised in order of their size and impact of business, said Deepinder Goyal in an internal statement
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Online food delivery app Zomato is gearing up to embrace a new identity and structure, following the completion of its Blinkit acquisition. Zomato's founder and CEO, Deepinder Goyal, informed on the company's Slack channel about its upcoming internal rebranding as "Eternal", an umbrella organisation to house multiple businesses led by their respective CEOs, according to a report.
"We are at a stage of life where we are maturing from running (more or less) a single business to now running multiple large companies," stated Goyal last week. In recent time, Zomato has been making investments in many a startup, with the latest one being its acquisition of quick commerce company Blinkit in an all-stock deal worth INR 4,447 crore. The move garnered a lot of criticism on social media from investors after Zomato's shares tanked on the stock market by over 70 per cent from their all-time high in November last year.
"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 continued on Slack, adding that the new name will be an internal one for the time being and that the Eternal logo will first start appearing in the office space and on the employees' t-shirts.
The new entity, Eternal, will comprise four companies--Zomato, Blinkit, Hyperpure and Feeding India--which will be organised in order of their size and impact of business. "The word Eternal is a mission statement in itself. Eternal means forever, something that will last for more than just a few lifetimes. Boundless, timeless, undying, endless, permanent - are some of the other words that can be used to describe Eternal," explained Goyal while elaborating on the vision behind forming a parent organisation.
According to Zomato's financial results for the April-June quarter announced on Monday, the company narrowed its consolidated loss to INR 185.7 crore in Q1FY23 compared with a loss of INR 356.2 crore in the year-ago period. Consolidated revenue stood at INR 1,413.9 crore in Q1FY23, rising by 67.44 per cent from INR 844.4 crore in the year-ago period. In his letter to the shareholders filed with BSE on Monday, Goyal responded to the criticism over the BlinkIt deal by stating that the decision was taken after "objectively evaluating" all available opportunities in the quick commerce segment.
