Zomato plans to rename itself Eternal Ltd. after winning approval to acquire another delivery startup.
Zomato Ltd., the Indian food-delivery company that went public last year, is appointing chief executive officers to lead its key business units and plans to rename itself Eternal Ltd. after winning approval to acquire another delivery startup.
Zomato, backed by Ant Group Co., Temasek Holdings Pte. and Goldman Sachs Group Inc., said in an internal memo that it will name CEOs to at least four units after the deal for grocery-delivery startup Blinkit. The target company also owns a business-to-business unit called Hyperpure, which delivers ingredients and kitchen supplies to restaurants.
“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 (e.g. Zomato, Blinkit, Hyperpure, Feeding India), all acting as peers to each other, and working as a super-team with each other towards building a single large and seamless organisation,” Deepinder Goyal, its co-founder and chief executive officer, wrote in a note shared with employees. “Starting today, we are going to call this larger organisation “Eternal,” Goyal said, adding that it will remain an internal name for the time being.
The company’s emails and workspaces will take on the Eternal name and Singh said he foresees a day when instant grocery overtakes its food delivery business. At that time, “we will change our company’s name from Zomato Ltd. to Eternal Ltd., and also change our stock ticker to ETERNAL,” he added in the note.
Zomato’s shares soared as much 19% on Tuesday after it posted a smaller-than-expected loss of 1.86 billion rupees ($23.7 million) in the quarter ending June. The stock plunged to a record low in July after the IPO lockup period for investors expired.