Rebranding of Zomato to Eternal Ltd: A Strategic and Exciting Evolution or Mere Housekeeping?
In the ever-evolving corporate landscape, brand names carry significant weight, often shaping consumer perceptions and market positioning. The rebranding of Zomato into Eternal Ltd has sparked discussions about the reasoning behind such a shift. While some see it as a mere administrative adjustment, others consider it a calculated move toward broader expansion.
This article explores the implications of the Rebranding of Zomato to Eternal Ltd, its potential impact on stakeholders, and how it aligns with global corporate strategies.
Table of Contents
Understanding Rebranding of Zomato: From Zomato Ltd to Eternal Ltd
Why Did Zomato Change Its Name?
On February 6, 2024, the Rebranding of Zomato to Eternal Ltd is announced, signaling a shift beyond its core food delivery business. This change, however, does not alter the customer-facing brand—the Zomato app remains unchanged– while the company’s stock ticker now reflects the new identity.
Is It Just a Corporate Restructuring?
Brand expert Harish Bijoor views the change as an internal restructuring rather than a radical shift. According to him, “Call it Eternal, call it Forever, call it Whatever—what’s in a brand name?” His perspective suggests that while the legal name changes, the consumer experience stays the same.
Positioning for Future Growth
The name Eternal offers greater flexibility for Zomato as it looks to diversify beyond food delivery. Business strategist Lloyd Mathias believes the name is a signal of growth, helping investors distinguish between Zomato’s various business verticals.
The Strategic Benefits of the Rebranding
Separation of Business Segments
Zomato has expanded beyond food delivery into areas like:
>Blinkit (quick commerce)
>Hyperpure (B2B food supply chain solutions)
>Restaurant technology & logistics
By rebranding of Zomato to Eternal Ltd, Zomato ensures that these sub-brands operate independently without being overshadowed by its flagship business.
Easier Acquisitions and Investments
A broader corporate name makes it easier to acquire new businesses without being pigeonholed as a food delivery company.
>Example: Google’s transition to Alphabet Inc. in 2015 allowed it to expand into AI, self-driving cars, and cloud computing.
>Similarly, Zomato’s shift to Eternal could enable expansion into tech, logistics, or e-commerce.
Reducing Dependence on One Brand
Brand strategist Nisha Sampath believes the move frees Zomato from its food-centric identity, allowing it to invest in ventures outside the food industry.
How Does It Compare to Other Corporate Rebrands?
Zomato’s strategy aligns with other tech giants that have rebranded to signal broader ambitions:
Company | Old Name | New Name | Reason for Change |
Google Inc. | Alphabet Inc. | Expand beyond search and ads | |
Facebook Inc. | Meta Platforms | Focus on metaverse & AI | |
Zomato | Zomato Ltd. | Eternal Ltd. | Diversify beyond food |
These changes reflect a common corporate strategy—establishing a holding company structure that supports multiple businesses under one umbrella.
What Experts Say About the Impact Rebranding of Zomato
The Consumer Experience Will Remain Unchanged After the Rebranding of Zomato
Despite the name change, the Zomato app and services will function as usual. Marketing expert Bobby Pawar believes that brand recognition won’t be affected, as the consumer-facing brand remains intact.
Stakeholders and Investors Are the Key Audience
K.V. Sridhar, founder of Hypercollective, states that the rebrand is more about corporate structuring than public perception. “For consumers, nothing changes. For shareholders, this brings clarity.”
A Step Toward Becoming a Holding Company
Over time, Zomato may transition into a full-fledged holding company like Alphabet or Tata Group, managing multiple businesses independently.
Challenges and Risks of the Rebranding of Zomato
While the move has strategic advantages, there are potential risks:
>Brand Dilution: The strong Zomato brand equity could weaken if investors and partners fail to connect with “Eternal Ltd.”
>Marketing Effort Required: It will take significant brand education and positioning to ensure the new name gains acceptance.
>Managing Diverse Ventures: Expanding beyond food will require expertise in multiple industries, which is easier said than done.
Financial Performance and Growth Potential After Rebranding of Zomato
Zomato has shown impressive growth, reporting a 64% year-on-year increase in revenue to ₹5,405 crore in the December quarter. However, its Blinkit segment still reports significant losses, indicating the need for sustainable expansion strategies.
The Eternal Ltd. transition could help secure new investments and drive growth beyond food delivery.
What’s Next for Zomato/Eternal Ltd after Rebranding of Zomato?
>Short-term Impact: Minimal changes for consumers; mostly affects corporate structuring.
>Long-term Impact: Positions Zomato for acquisitions, investments, and diversified growth.
>Future Potential: Expansion into logistics, tech, and e-commerce under the Eternal Ltd. umbrella.
As Zomato evolves into Eternal Ltd, this transformation represents more than just a name change—it’s the foundation for a larger corporate vision. While the consumer-facing brand remains unchanged, the business itself is gearing up for a future beyond food delivery.
FAQs
1-Will the Zomato app be renamed Eternal?
No, the Zomato app will continue to operate under its existing brand. The name change applies to the parent company, not the consumer-facing business.
2-Why did Zomato choose the name “Eternal”?
The name suggests long-term sustainability and endless growth, making it ideal for a company looking to diversify.
3-Will this affect Zomato’s stock?
The stock ticker has changed, but the overall business fundamentals remain the same. Investors may see it as a positive move for future expansion.
4-What industries might Eternal Ltd expand into?
Potential sectors include logistics, e-commerce, cloud kitchens, and tech-driven services, much like Alphabet and Amazon.
5-How does this compare to Google’s transition to Alphabet?
Similar to Alphabet, Eternal Ltd. allows for a diversified business model, reducing dependency on a single brand identity.
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