Zomato, an online meal delivery aggregator, is implementing a multiple CEO structure for its companies, which will be housed within a larger organization named Eternal.
“We are going to call this larger organization Eternal beginning today,” he added, adding that it will remain an internal term for the time being.
Zomato now operates four businesses: Zomato, Blinkit, Hyperpure, and Feeding India.
Goyal highlighted that the organization is transitioning from running a single major business to running numerous huge businesses. He also stated that Eternal would have several firms.
Email inquiries were not returned by Zomato.
Zomato has been making aggressive investments in startups. In addition to Blinkit (previously Grofers), it invested in business-to-business (B2B) logistics technology player Shiprocket, hyperlocal discovery portal magicpin, and fitness behemoth Curefit last year.
Goyal stated in a corporate blog in November of last year that Zomato was setting aside a $1 billion war chest to invest in several companies over the next two years. He has previously stated that a big portion of it will most likely go into the quick-commerce industry. This year, Zomato paid $569 million for the acquisition of Blinkit.
Zomato’s stock has been under intense selling pressure in recent weeks, as the one-year lock-in period for internal investors owning around 613 crore shares, or 78 percent of Zomato’s shares, expired on Saturday (July 23). Moore Strategic Ventures liquidated its entire stake in Zomato as part of the big sell-off, resulting in a loss on its over-a-year-old gamble.
The food aggregator’s share price has fallen about 70% from its peak, which occurred immediately after a spectacular offering last year. On the BSE on Monday, Zomato’s shares were trading at 45.3 rupees, down 3.31 percent.
However, shares of not only Zomato but also other Internet businesses that went public last year have plummeted due to worries about their valuations. The news of Zomato’s acquisition of Blinkit has also prompted concerns about the company’s road to profitability.
Last Monday, global brokerage company Jefferies stated that Zomato offers an excellent case for long-term investors, setting a 12-month target price of $100 per share. According to Jefferies, Zomato management has hastened its journey toward improved unit economics and is now aiming for break-even in the meal delivery industry in the near future.
Zomato recorded a net loss of 359.7 crores for the March quarter, compared to a loss of 138.1 crores in the same time the previous year.
Zomato’s revenue, on the other hand, increased by 75% in Q4FY22 to 1,211.8 crores from 692.4 crores the previous year. On August 1, the corporation will disclose its fiscal first quarter (April-June) profits.
Follow and connect with us on Facebook, LinkedIn & Twitter
