New Delhi : Eternal, the parent company of food delivery platform Zomato, announced a top leadership change on Wednesday, with founder Deepinder Goyal stepping down as chief executive officer and managing director. Eternal, which operates food delivery platform Zomato and quick commerce arm Blinkit, also reported a sequential rise in profit for the third quarter, driven by strong demand for quick-delivery services.
The Gurugram-based company posted a consolidated net profit of Rs 1.02 billion for the quarter ended December 31, nearly double the Rs 650 million reported in the previous quarter. Consolidated revenue from operations stood at Rs 163.15 billion in the third quarter.In a letter to shareholders, he said Dhindsa will own day-to-day execution, operating priorities and business decisions.
“My involvement in long-term strategy, culture, leadership development, and ethics and governance, continues. This is where I have increasingly focused lately anyway,” Goyal said. The leadership change shifts focus to Eternal’s fast-growing instant delivery business in an $11.5 billion market where it fiercely competes with Swiggy (SWIG.NS), opens new tab and Amazon.com (AMZN.O), opens new tab among others.
“Bringing in the CEO from Blinkit is testimony that quick commerce is the future – it is the rainmaker and the key differentiator,” brand strategy specialist Harish Bijoor said. Eternal also reported a 73% jump in profit to 1.02 billion rupees ($11.12 million) for the quarter ended December 31, from 590 million rupees a year ago. Blinkit posted adjusted core earnings of 40 million rupees for the three months ending December 31, compared to a loss of 1.56 billion in the previous quarter.
Dhindsa, who earlier ran international operations at Zomato for more than two years, founded Blinkit in 2014. Shares of the company have more than doubled since its listing, adding about $15 billion in market value. On Wednesday, they settled up 5.2% ahead of results.
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