From Zomato to Eternal: The Story Behind the Food-Tech Giant’s Rebrand

In a move that signals a significant shift in its corporate identity, Zomato Ltd has announced that its shareholders have approved a special resolution to change the company’s name to Eternal Ltd. While the beloved food delivery platform will continue to operate under the Zomato brand, the corporate entity that governs it is undergoing a major transformation. But what does this really mean for the company, its investors, and the food-tech industry as a whole? Let's explore with TICE.

For over a decade, Zomato has been a household name in India, synonymous with online food delivery and restaurant discovery. From humble beginnings as a restaurant listing service in 2008, the company evolved into a food delivery behemoth, battling competitors like Swiggy and international players eyeing the Indian market. However, with this rebranding, Zomato is signaling something more than just a name change—it’s a declaration of its evolving business vision.

Zomato's Rebranding: The Approval and Legal Formalities

The name change was approved by shareholders via a postal ballot, following a resolution that was initially proposed by the company’s board on February 6. This led to subsequent modifications in the company’s Memorandum of Association (MoA) and Articles of Association (AoA), reflecting the new name officially. The scrutinizer’s report, released on March 9, confirmed that the motion had received shareholder consent, allowing the company to move forward with its corporate rebranding.

It’s important to note that this rebranding does not affect the customer-facing aspects of Zomato. The app, website, and overall food delivery operations will continue to function under the Zomato brand. However, at a structural level, the company is transitioning into something much larger.

Beyond Food Delivery: A Bigger Vision

The rebranding from Zomato Ltd to Eternal Ltd is not just about a new name—it’s about redefining the company's ambitions. Over the past few years, Zomato has strategically expanded beyond food delivery. The acquisition of Blinkit, a quick commerce platform, was a major step in diversifying its business. Additionally, the company has ventured into logistics with Hyperpure, a B2B grocery and supplies service for restaurants, and District, a new initiative that remains under wraps.

According to Zomato’s CEO, Deepinder Goyal, the management team has been internally referring to the corporate entity as “Eternal” ever since the Blinkit acquisition. This was done to create a clear distinction between Zomato, the food delivery platform, and the broader organization that encompasses multiple businesses. Now, with the legal name change, that internal reference is becoming a reality.

Zomato's New Digital Identity

Along with the name change, Zomato is also transitioning its corporate website from zomato.com to eternal.com. Additionally, its stock ticker on the exchange will be updated from ZOMATO to ETERNAL. This is a clear indication that the company is preparing for a future where it is recognized as more than just a food delivery app.

In many ways, this move mirrors strategies adopted by global tech giants. Facebook, for instance, rebranded its parent company as Meta to highlight its focus beyond social media, towards the metaverse. Similarly, Google restructured its corporate identity under Alphabet to better manage its diverse ventures. Zomato seems to be taking a page out of this playbook as it gears up for a more diversified future.

What Does This Mean for Shareholders?

While the corporate rebranding reflects an exciting future, the company’s stock performance has been a mixed bag. On March 10, Zomato shares were down by 0.88% at ₹214.92 apiece, continuing a decline of 22.27% in 2024 so far. Despite this, long-term investors may view the shift as a strategic move that could open new growth avenues beyond the food delivery sector.

The name ‘Eternal’ hints at a vision of longevity and adaptability. As the company scales its multiple businesses, it is likely looking to establish itself as a broader tech-driven conglomerate rather than being restricted to food-tech alone.

The Road Ahead

Rebranding is often more than just a cosmetic change—it is a message to stakeholders about where the company is headed. Zomato’s transition to Eternal Ltd reflects its ambition to become a multi-faceted tech enterprise. While food delivery remains a core business, the company is setting its sights on larger opportunities in quick commerce, logistics, and perhaps even newer, undisclosed ventures.

As Indian startups continue to evolve beyond their initial offerings, this move by Zomato could set a precedent for other companies seeking to expand their horizons. Whether this transformation proves to be a masterstroke or just a symbolic change remains to be seen, but one thing is clear—Zomato, or rather Eternal, is preparing for a much bigger future.