Zomato Ltd., the Indian food delivery company that went public last year, is appointing chief executive officers to oversee its key businesses and planning to rebrand itself Eternal ltd after receiving approval to acquire another delivery startup.
Zomato powered by Ant Group Co., Temasek Holdings Pte. and Goldman Sachs Group Inc., said in an internal memo that they will appoint CEOs for at least four entities after the deal to start grocery delivery Blinkit. The target company also owns a business-to-business unit called Hyperpure, which supplies ingredients and kitchenware 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 companies (e.g. super team together to build a single large and seamless organization”, Deepinder Goyal, its co-founder and chief executive officer, wrote in a note shared with employees. “Starting today, we will be calling this larger organization Eternal,” Goyal said, adding that it will remain an internal name for now.
The company’s email and workspaces will adopt the Eternal name, and Singh said he foresees a day when instant groceries overtake the grocery delivery business. At this point, “we will change the name of our company from Zomato Ltd. in Eternal Ltd. change and also change our stock ticker to ETERNAL,” he added in the statement.
Zomato’s shares rose as much as 19% on Tuesday after the company posted a smaller-than-expected loss of Rs.1.86 billion ($23.7 million) for the quarter ended June. The stock fell to a record low in July after the IPO lock-up period for investors ended.