Eternal (formerly known as Zomato), a leading Indian consumer-tech platform, has recently issued a public clarification denying reports of the resignation of Rakesh Ranjan, the CEO of its food delivery business. The company stated that Ranjan continues to be part of its leadership team, and the reshuffling within its leadership is a standard practice as part of ongoing organizational optimization. The clarification follows media speculation suggesting that Ranjan’s resignation had been submitted, with company founder Deepinder Goyal expected to take over temporarily. This announcement comes at a time when the food delivery sector in India is facing challenges due to slowing growth and rising competition.
1. Introduction to Eternal (formerly Zomato)
Eternal, the newly rebranded entity of Zomato, is a consumer-tech platform that has become one of the largest players in the food delivery industry in India. Established as a restaurant discovery and food delivery platform, Zomato’s transformation into Eternal is part of a larger effort to streamline its operations and expand its footprint in various verticals under a unified group umbrella.
1.1 Revenue and Business Model Eternal primarily operates in the food delivery and restaurant tech industries. Its revenue model is based on a commission from restaurant partners for each order processed through its platform. The company also generates revenue through its subscription services, such as Zomato Gold, which offers customers exclusive dining benefits. Despite experiencing a slowdown in recent times, food delivery remains its largest revenue-generating segment.
1.2 Founders and Background Eternal’s journey began in 2008 when Deepinder Goyal and Pankaj Chaddah co-founded Zomato. Deepinder Goyal, the current CEO of Eternal, has been instrumental in leading the company through various transformations, including its recent rebranding. Zomato, under Goyal’s leadership, has gone from a small startup to one of the most recognized names in the Indian food delivery market.
1.3 Services Offered Eternal offers a range of services, including food delivery, restaurant discovery, and a hyperlocal advertising platform for restaurants. With its vast network of restaurant partners, the platform serves millions of customers across India, while also competing against other giants like Swiggy.
2. The Denial of CEO Resignation by Eternal
2.1 Reports of Rakesh Ranjan’s Resignation A recent media report by the Economic Times suggested that Rakesh Ranjan, CEO of Eternal food delivery business, had tendered his resignation. The report further speculated that Deepinder Goyal would take over as interim CEO while a permanent replacement was found. This led to confusion among investors, stakeholders, and the media about the stability of the company’s leadership.
2.2 Eternal’s Official Statement In response to these reports, Eternal issued an official clarification. In a filing with the stock exchanges, the company categorically denied that Ranjan had resigned. “We would like to clarify that as of today, there has been no resignation tendered by Rakesh Ranjan. He still continues to be part of the leadership team,” said the statement.
2.3 Leadership Reshuffling Explained Eternal emphasized that reshuffling the leadership team internally is a routine process designed to enhance organizational efficiency. “At Eternal Group, we consider internal reshuffling of the leadership team a standard practice as part of our ongoing efforts to optimize organizational effectiveness,” the statement continued.
2.4 Future Leadership Changes The company did not rule out the possibility of future leadership changes but clarified that it had not made any formal announcement regarding such changes. This highlights the ongoing efforts within the company to strengthen its leadership team as part of its strategic vision.
3. Background on Eternal’s Challenges and Market Context
3.1 Slowdown in India’s Food Delivery Sector The clarification comes amid broader challenges facing India’s food delivery sector. Both Eternal and its largest competitor, Swiggy, have been grappling with slowing growth and high competition. The festive-heavy December quarter saw only a modest growth of 2% in Eternal’s food delivery business. The gross order value (GOV) stood at Rs 9,913 crore, reflecting a 17% year-over-year increase, though growth had clearly slowed compared to earlier periods.
3.2 Market Share Dynamics As of the most recent quarter, Swiggy held a dominant 43% share of the Indian food delivery market, up from 42% in the previous quarter. Eternal, which once led the market, faces intense competition and must adapt to changing consumer behaviors and increased pressure from rivals. This backdrop adds weight to the reports of leadership changes and restructuring within the company.
3.3 Rakesh Ranjan’s Role and Background Rakesh Ranjan, who has been with Zomato for over seven years, was appointed CEO of the food delivery division in May 2023. Before this role, Ranjan had led Hyperpure, Zomato’s B2B supply chain business. He has worked to stabilize the food delivery business during a period of slowing growth, and the recent clarification further solidifies his ongoing role in guiding the company’s strategy.
4. Industry Insights and Strategic Implications for Eternal
4.1 Reshuffling as Part of Strategy The company’s clarification regarding Ranjan’s resignation may seem like a routine announcement, but it highlights the importance of leadership stability during periods of market uncertainty. The food delivery sector in India is under increasing pressure from growing competition, rising operational costs, and changing consumer preferences. Eternal’s emphasis on leadership optimization suggests that the company is preparing for future growth, despite the challenges it currently faces.
4.2 Adapting to the Market Slowdown The slowdown in growth can be attributed to several factors, including market saturation in India’s top-tier cities, evolving consumer behavior, and inflationary pressures affecting discretionary spending. Both Eternal and Swiggy are focusing on diversifying their offerings and reaching newer markets to sustain growth. For Eternal, the key challenge will be to maintain its market share while increasing profitability in a highly competitive landscape.
4.3 Future Prospects for Eternal Looking ahead, Eternal’s prospects depend on its ability to diversify its revenue streams and maintain its competitive edge. This includes expanding into newer verticals, focusing on profitability, and potentially exploring international markets. The leadership team, including Rakesh Ranjan, will play a critical role in navigating these challenges.
5. Learning for Startups and Entrepreneurs
5.1 Leadership and Organizational Change For startups, the episode with Eternal demonstrates the importance of leadership stability during times of uncertainty. Organizational changes, though sometimes disruptive, are essential for growth and adaptation. However, clear communication with stakeholders is key to maintaining trust and avoiding confusion.
5.2 Adaptability in Challenging Markets This news also highlights the need for startups to remain adaptable in challenging markets. The food delivery industry’s slowdown presents an opportunity for entrepreneurs to explore innovative solutions and create business models that can weather market disruptions.
5.3 Focus on Operational Efficiency As demonstrated by Eternal’s strategic reshuffling, optimizing organizational efficiency is a continuous process. For startups, this means constantly evaluating and refining leadership structures, ensuring that the right people are in the right roles to drive the company forward.
6. Conclusion: Eternal Denies CEO Resignation
In conclusion, Eternal’s swift and clear response to the resignation rumors reinforces the company’s commitment to transparent leadership and operational efficiency. With Rakesh Ranjan continuing to lead its food delivery segment, Eternal is focused on navigating the challenges of a slowing market while continuing to optimize its leadership structure for future success.
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