Zomato Rebrands to Eternal: A New Chapter for the Food-Tech Giant
Zomato, one of India’s largest food-tech companies, has officially changed its corporate name to Eternal Ltd. The decision, approved by the company’s board and disclosed in a stock exchange filing on February 6, 2025, marks a strategic shift as the company expands its business beyond food delivery.
The Reason Behind the Name Change
Zomato’s acquisition of Blinkit, a quick-commerce platform, played a significant role in the company’s decision to undergo a rebranding. In an official statement, Deepinder Goyal, Group CEO and Co-founder of Zomato, explained that the company had been using the term ‘Eternal’ internally to differentiate between the corporate entity and the Zomato app. Now that Blinkit has become a major part of the company’s future growth, Goyal believes it is time for the corporate entity to embrace a new identity.
“We also thought that we would publicly rename the company to Eternal, the day something beyond Zomato became a significant driver of our future. Today, with Blinkit, I feel we are there.” – Deepinder Goyal, CEO & Co-founder
What Will Change?
The Zomato app and brand will retain their existing identity, ensuring that customers continue to recognize and engage with the brand they are familiar with. However, the company’s stock ticker will now be updated from Zomato to Eternal on the Indian stock exchange.
As of now, Eternal Ltd. will oversee four major businesses under its umbrella:
- Zomato (Food delivery platform)
- Blinkit (Quick commerce and instant grocery delivery service)
- Hyperpure (B2B food supply chain solution)
- District (Dining out and restaurant solutions)
This shift signifies the company’s ambition to evolve into a diversified digital services ecosystem beyond its core food delivery business.
Eternal: More Than Just a Name Change
According to Goyal, the rebranding to Eternal is more than just a corporate name change; it is a mission statement that reflects the company’s long-term vision.
“Eternal is a powerful name, and to be honest, it scares me to my core. It is a tall order to live up to. Because ‘Eternal’ carries both a promise and a paradox.” – Deepinder Goyal
The name reflects the company’s goal of enduring through industry shifts and remaining a dominant player in the evolving landscape of food tech and commerce.
Current Challenges Facing Zomato (Now Eternal)
The rebranding comes at a time when Zomato’s core business—food delivery—has been experiencing a slowdown. This is in line with similar challenges faced by competitors like Swiggy, which has also witnessed declining demand.
Key Challenges Include:
- Declining demand in the food delivery sector:
- In a recent shareholder letter (January 2025), Rakesh Ranjan, CEO of Zomato’s food ordering and delivery business, acknowledged a broad-based slowdown in demand since mid-November.
- Profitability Concerns:
- In Q3FY25, Zomato reported a 57% year-on-year drop in profit after tax (PAT), falling to ₹59 crore, compared to ₹138 crore in the same quarter last year.
- The company had previously recorded ₹176 crore PAT in Q2FY25, indicating a sharp decline in the latest quarter.
- Revenue Growth:
- Despite the decline in profits, Zomato’s revenue increased by 64% year-on-year in Q3FY25, reaching ₹5,404 crore, up from ₹3,288 crore in Q3FY24.
What’s Next for Eternal Ltd.?
The name change still requires shareholder approval before it becomes official. If greenlit, it will pave the way for Eternal Ltd. to broaden its business scope beyond food delivery.
Some expected future developments include:
- Expansion of Blinkit: Blinkit is already gaining traction, and the company is expected to strengthen its quick commerce business further.
- Growth of Hyperpure: As more restaurants and food businesses digitize their supply chains, Hyperpure is poised for expansion.
- Potential New Business Ventures: Eternal Ltd. may explore fintech solutions, AI-driven food tech innovations, or international expansion to diversify revenue streams.
Impact on Stock Market and Investors
The rebranding could have both short-term and long-term implications for investors and the stock market:
- Short-term Market Reaction: Investors might initially react with uncertainty as they evaluate what the rebranding means for the company’s financial outlook.
- Long-term Growth Prospects: If the rebranding aligns with successful business diversification, Eternal Ltd. could attract new institutional investors looking for exposure beyond food delivery.
Conclusion: The Future of Eternal Ltd.
Zomato’s transformation into Eternal Ltd. marks a strategic pivot that aligns with its vision of building a multi-vertical digital ecosystem. While food delivery remains a crucial part of its operations, the company is actively exploring new avenues for growth with Blinkit, Hyperpure, and other ventures.
The road ahead will depend on how effectively Eternal Ltd. executes its expansion strategy, adapts to changing consumer behavior, and navigates economic challenges. If successful, the transition to Eternal could position the company as a tech-driven powerhouse in India’s rapidly evolving digital economy.
