The article discusses the evolution of Zomato, a food delivery company, and its rebranding to Eternal. The company’s founder, Deepinder Goyal, has stated that the rebranding is a symbolic move, indicating that Eternal is no longer just a food delivery company, but a multi-vertical conglomerate. The article argues that this move is a strategic shift, allowing Zomato to diversify its business and address its dependance on food delivery.
The article also compares Zomato’s approach to that of its parent company, Info Edge (Naukri), which has a similar business model, but has not diversified as much. The article suggests that Zomato’s rebranding and diversification could be a defining moment for the Indian internet business, potentially rewriting the playbook for how Indian internet companies operate.
The article also discusses the challenges of building a sustainable business in India, citing an investor’s comment that Indian internet businesses tend to struggle. The article notes that Goyal has a track record of building successful businesses, but acknowledges that building an internet conglomerate is a complex task.
The article concludes by suggesting that the key to success for Eternal will be finding the right balance between growth and profitability, and ensuring that the company keeps a focus on its core business, while also expanding into new areas. It notes that management bandwidth will be a key factor in determining success, and that Goyal’s team will need to navigate the challenges of building a new business while maintaining focus on the core.