The board of Zomato has approved the proposal to change the name of the company from 'Zomato Limited' to 'Eternal Limited'.
In an exchange filing, Zomato said that the board also approved the amendment in the Memorandum of Association and Articles of Association to give effect to the name change.
However, the change in identity is subject to the approval of the shareholders of the company, the Ministry of Corporate Affairs and other applicable statutory authorities, as required.
In a shareholders' letter, founder and CEO Deepinder Goyal said Zomato started using 'Eternal' internally after acquiring Blinkit to distinguish between its corporate identity and the food delivery app.
Zomato acquired quick commerce startup Blinkit in 2022 in an all-stock deal worth $568 Mn.
"We also thought that we would publicly rename the company to Eternal, the day something beyond Zomato became a significant driver of our future. Today, with Blinkit, I feel we are there. We would like to rename Zomato Ltd., the company (not the brand/app), to Eternal Ltd," Goyal said.
Once Zomato obtains the shareholders' nod to change its identity, its corporate website will transition from 'zomato.com' to 'eternal.com' and its stock ticker will change from ZOMATO to ETERNAL.
"Eternal will comprise four major businesses (as of now) - Zomato, Blinkit, District and Hyperpure," Goyal said.
It must be noted that although the company plans to rename its group name, the Zomato app and brand name will remain unchanged.
Reports about Zomato rebranding itself as Eternal first surfaced in 2022. Goyal said then that Eternal was just a brand identity, only "a notion to bind all our different businesses and leaders under a common name and a mission".
At the time, he also said that the rebranding would not change anyone's roles and responsibilities at the company.
Zomato emerged as one of India's largest consumer internet companies last year with its market capitalisation reaching nearly INR 3 Lakh Cr. In December 2024, it became the first new-age tech stock to feature in the 30-share BSE Sensex, replacing JSW Steel.
However, the company is facing a slowdown in its bread-and-butter food delivery business and stiff competition in the quick commerce segment, as evidenced by its December quarter earnings.
Zomato's net profit slumped over 57% year-on-year and 66% quarter-on-quarter to INR 59 Cr in Q3 FY25. Although the bottom line took a hit, its top line grew more than 64% YoY and 13% QoQ to INR 5,405 Cr during the quarter under review.
Amid the changing landscape of food delivery and quick commerce in India, Zomato raised INR 8,500 Cr in December through a qualified institutional placement (QIP) - the first fundraising by the company since its IPO in 2021.
The timing of the move was particularly noteworthy because it came just days after its rival Swiggy launched its $1.4 Bn IPO. Meanwhile, Zepto is also eyeing a public listing this year and plans to increase the size of its IPO from $800 Mn to $1 Bn. In 2024 alone, it secured funding of over $1.3 Bn.
Shares of Zomato ended Thursday's trading session 0.95% lower at INR 229.05 apiece on the BSE.