Zomato plans to adopt a new parent company “Eternal” with a multi-CEO structure

Zomato plans to adopt a new parent company “Eternal” with a multi-CEO structure

August 1, 2022 at 12:56 am
2 min read

Zomato wants to emulate the business model of its largest shareholder, Info Edge

Zomato is rebranding itself internally as “Eternal” and plans to have a different CEO for each of its companies.

The move was reportedly announced by founder and CEO Deepinder Goyal in a note on the company’s Slack channel last week.

This shows that the company wants to follow the example of Info Edge, one of its early investors and largest shareholders.

Why is this story important?

  • Zomato wants to be a group company with diversified businesses ranging from food delivery to logistics.
  • However, its stock has come under intense selling pressure, and it’s unclear whether the company will transition to Eternal.
  • As companies expand, it has become necessary to have different people in charge of different companies.

Multiple CEOs will work as peers

In his message, Goyal described how the business would operate.

“We’re transitioning from a company where I’m CEO to one where multiple CEOs run each of our businesses, all as peers to each other.”

He also said top bosses would work as a team to build a “single large seamless organization” called Eternity.

eternity is also a mission statement

Goyal also claims that Eternal is a mission statement in itself. He described it as “Boundless, Eternal, Immortal, Endless and Eternal”.

Eternal will reportedly consist of a number of companies, including Zomato (delivery plus dining out), Feeding India, Blinkit and Hyperpure.

While Eternal is currently an internal name, its logo will soon be seen on the company’s offices and accessories such as T-shirts, Goyal said.

Check out Zomato’s recent investments

Zomato recently acquired grocery delivery startup Blinkit for $570 million.

It has made six investments worth about $200 million in the past year, including $75 million in Shiprocet and $50 million in (now and Magicpin.

It also invested $15 million in ad tech company Adonmo, $5 million in food robotics company Mukunda and $5 million in restaurant software company UrbanPiper.

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