Zomato’s stock hits an all-time low and the company’s ambition hits an all-time high as Chief Executive Officer ( CEO ) Deepinder Goyal announced on the company’s slack channel that they are internally rebranding themselves to “Eternal” under which there will be 4 companies that are Zomato, Blinkit, Hyperpure and Feeding India. Eternal will act as an umbrella organisation for these 4 aforementioned brands.
The umbrella organisation is called Eternal Deepinder Goyal said the aim is to create something which will last more than one life, a boundless, timeless, undying endless mission statement for the company. The company has internally started to rebrand itself from August 1 as a few logos and T-shirts can be seen.
The restructure was approved after the Blinkit acquisition where around 97% of the shareholders voted in favour of the acquisition. The flexibility and forward-looking nature of the Zomato shareholders should be accredited with their new plan of a multiple CEO organisation.
Why a multiple CEO organisation?
Zomato now has acquired many companies under itself and also aims to expand more with the company setting aside a War chest of $ 1 billion to invest in many startups. This war chest funded the Blinkit takeover which was for around $ 567 million.
Zomato was originally a company with one CEO, now they will be having multiple CEOs for each of their subsidiaries. In this structure, all the CEOs will be working as colleagues and combining as a super team to build a large seamless organisation as Deepinder Goyal said.
Zomato is now maturing from running one single firm to running multiple large firms. So the management has decided to appoint one CEO for each of its companies under the parent organisation Eternal. This will be the first time in India that we will witness one umbrella organisation run by 4 CEOs.
The Blinkit acquisition has taken the company count to 4. Since last year they have made around six-seven minority investments worth around $ 200 million out of which $ 75 million for Shiprocket which is a logistics tech company and $ 50 million each for Magicpin a hyperlocal discovery platform and Curefit a fitness stronghold.
They have also acquired huge stakes in companies like Mukunda, a kitchen automation and robotics company. Zomato has planned to spend a majority of the money in the War Chest to quick commerce space as they somewhat aim to establish a monopoly under them with independent working companies with their leaders but under the name of Zomato soon to be Eternal.
Zomato, soon to be Eternal, aims to be a profitable firm in the long run which is evident by its plans, finances and acquisitions. Their finances and balance sheet data are showing an improvement which is a little but good to go as they are cutting out losses and aiming for a break-even point for their investors shortly.
Zomato never fails to surprise us first with their hype for the Zomato stock then the acquisitions and now the multiple Chief Executive Officer (CEO) strategy. I am very excited to see the outcome of this in the long run, aren’t you?
Sources: Economictimes.com and Businesstoday.in