Zomato’s recent decision to establish a separate identity for its parent company, now named Eternal Ltd., is set to provide the food delivery giant with increased freedom to pursue various experimental projects across its different business segments without the risk of one brand adversely affecting another. This strategic move, inspired by the likes of Alphabet and Meta, aims to enhance transparency for investors and enable Zomato to take bolder risks.
The rebranding comes four years after Facebook transitioned to Meta Platforms Inc. and a decade after Google became Alphabet Inc. Zomato’s board has approved the name change, pending shareholder consent. This new identity reflects Zomato’s expanding focus on its quick-commerce brand Blinkit, restaurant supplies division Hyperpure, and events platform District, signaling a broader vision for sustainable growth.
Industry experts believe that while the Zomato app and brand will remain unchanged, the new corporate name signifies diversification and potential future expansions beyond its core food delivery services. The rebranding will allow Zomato to explore innovative projects across its various businesses without the fear of jeopardizing any single brand, while also providing more flexibility in managing intellectual property and pursuing acquisitions.
According to corporate consultancy JMJA & Associates, operating multiple businesses under one umbrella will streamline various business models and open new avenues for exploration. This diversification could lead to an expanded portfolio through entry into additional product lines.
In a communication to shareholders, Zomato CEO Deepinder Goyal emphasized that this decision aligns with the company’s vision of creating a lasting institution that transcends its current leadership. He noted that institutions are shaped by their names, which play a crucial role in defining a company’s future.
Zomato also intends to change its stock ticker from Zomato to Eternal, pending shareholder approval. Following the announcement, Zomato shares rose by 1.89% on the NSE, closing at ₹233.37, while the benchmark Nifty 50 remained relatively stable after the Reserve Bank of India’s recent rate decision.
