Zomato plans new parent organization 'Eternal' with multiple-CEO structure
Zomato is internally rebranding itself as "Eternal' and plans to have separate CEOs 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 indicates that the firm wants to model itself after Info Edge, which is one of its early investors and largest shareholders.
Why does this story matter?
Zomato wants to become a group company with a diverse range of businesses, ranging from food delivery to logistics. However, its shares have witnessed intense sell-off pressure, and it is also unclear whether the firm will morph into Eternal. As the firm expands, it has become essential for it to have different personnel in charge of various companies.
The multiple CEOs will work as peers
Goyal described how the business will operate in his message. "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, all acting as peers to each other." He also said that the top bosses will work as a team to build a "single large and seamless organization" called Eternal.
Eternal is also a mission statement
Goyal also claimed that Eternal itself is a mission statement. He described it as "boundless, timeless, undying, endless, and permanent." Eternal will reportedly comprise multiple companies, including Zomato (delivery plus dining out), Feeding India, Blinkit, and Hyperpure. While Eternal is an internal name as of now, its logo will soon be seen at the company's offices and accessories such as t-shirts, Goyal stated.
A look at Zomato's recent investments
Zomato bought grocery delivery start-up Blinkit for $570 million recently. It made six investments worth around $200 million in the past year, including $75 million in Shiprocket and $50 million each in cure.fit (now called cult.fit) and Magicpin. It also invested $15 million in adtech company Adonmo, $5 million in food robotics firm Mukunda, and $5 million in restaurant software company UrbanPiper.
