### **Overview** Eternal Ltd (formerly Zomato Limited) is a leading Indian technology platform transforming urban consumer experiences across food delivery, quick commerce, B2B supply, and lifestyle services. With a vision to build “indistinguishable from magic” services, the company operates a multi-vertical ecosystem centered on hyperlocal commerce and experiences. As of Q2 FY26, Eternal has evolved into a diversified platform with strong growth trajectories in food delivery, quick commerce (Blinkit), B2B supplies (Hyperpure), and the newly scaled "Going-out" segment via **District**, its standalone app for dining, entertainment, and lifestyle experiences. --- ### **Key Business Segments** 1. **Food Delivery & Ordering (India)** - Core marketplace connecting over **2.5 lakh monthly active restaurants** with 63 million annual transacting customers across 800+ Indian cities. - Average order value (AOV): ~INR 400; contribution margins have improved from negative to positive in several top cities, with a path to group-wide EBITDA break-even at 5% margin. - Zomato Gold has over 900,000 subscribers, enhancing customer loyalty. 2. **Quick Commerce (Blinkit)** - Operates a 10-minute delivery network through dark stores across urban India, offering groceries, electronics, beauty, and festive goods. - Achieved **123% YoY GMV growth in first nine months of FY25**; FY24 GMV grew 93% YoY. - Average AOV influenced by seasonality (e.g., higher during rains) and category expansion. - Transitioning toward **inventory ownership (IOCC model)** to unlock growth in fragmented, unbranded, and seasonal categories (e.g., home décor, pooja items), aiming for improved gross margins. - Advertising revenue grew **220% YoY (Q3 FY24)**, driven by brand partnerships, sampling, and self-serve ad platform **Brand Central**. 3. **Going-Out Experiences (via District)** - Unified platform combining dining-out (restaurant discovery, reservations, dining payments) and entertainment ticketing (movies, sports, concerts, live events). - **District app launched November 2024**, now with **6.5M+ downloads**; expanded in UAE under a single app for dining and events. - Digitizing offline retail: added 'stores' discovery on District to showcase nearby retailers with exclusive offers. - **Onboarded ~3,400 retail outlets across six Indian cities** by Q2 FY26; facilitated **60,000+ transactions**. - **FY24 GOV: INR 3,225 crore; grew 136% YoY; already profitable**. - **Projected FY26 GOV: >INR 10,000 crore** post-integration of Paytm’s ticketing business. - **Annualized NOV: INR 8,000 crore (Q1 FY26)**; customer base: ~2M monthly transacting users; NAOV >INR 1,700; ARPO >INR 160. - Projects **$3B annual NOV & $150M Adjusted EBITDA in 5 years** with successful execution. 4. **B2B Supplies (Hyperpure)** - Farm-to-fork B2B supply chain serving **over 27,000 restaurants** (up 50% QoQ in early 2022), across 9+ Indian cities. - Growing at **35–40% YoY (FY25)** with Adjusted EBITDA margin of -3%; Bangalore nearing profitability, indicating path to scale. - Strategic objective: become the “**Sysco of India**.” - Diversifying into express deliveries (<4 hr), inter-city logistics, and value-added categories. - Supplies inventory to **Blinkit sellers**, monetizing cross-segment synergies. 5. **Zomato Labs & External Innovation** - **Nugget**: AI-powered, no-code customer support platform launched commercially (Feb 2025); handles 15M+ monthly support tickets across Eternal brands. - First external product from Zomato Labs, signaling entry into B2B SaaS. --- ### **Strategic Developments & Recent Initiatives** #### **Brand & Product Evolution** - **Launched 'District' (Aug 2024)**: Separated from Zomato app to build a distinct “super brand” for lifestyle and going-out experiences. - Acquired **Paytm’s entertainment ticketing business** (movies, sports, live events): - FY24 GOV: INR 2,000+ crore, sold 78 million tickets to 10M+ users. - Revenue: INR 297 crore, Adjusted EBITDA: INR 29 crore (~1.5% margin). - **District UAE launch (Oct 2025)**: Integrated dining and events in a single app; leverages region’s global appeal for outdoor experiences. #### **Geographic Expansion** - **Conservative approach** due to high fixed costs (supply chain, real estate). - Operating in **~20% of the top 40% addressable markets**; targeting disciplined expansion to 2,000 stores by end-2026. - Focused on **top eight Indian cities**; 80% of new Blinkit stores opened in Q4 FY24 located in these hubs. - Expansion pace driven by **unit economics, market potential, internal bandwidth, and capital efficiency**. #### **New Product Launches** - **Bistro (Apr 2025 onwards)**: - 10-minute delivery kitchens (38 live in Delhi-NCR & Bangalore). - Targets **affordable quality meals & snackables**; aims at underserved in-office delivery market. - Early data shows **incremental demand with no cannibalization**; contribution break-even from Month 1. - Developed with food researchers, chefs, and partners; piloting curated menu + dedicated fleet. #### **Operational Strategy** - **Investing in warehousing and supply chain capacity** for sustainable growth, accepting short-term margin pressure. - **Optimizing product assortment, replenishment, and store design** to adapt to evolving customer behavior. - **Franchise model for dark stores**: ~50% Blinkit stores operated by franchisees who contribute space, capital, and labor for local efficiency. - Focused on **high-frequency SKUs** and **non-kirana categories** (e.g., Perfora oral care), capturing share from next-day e-commerce and mid-premium retail. #### **Diversification & Risk Mitigation** - **Multiple revenue streams** reduce reliance on food delivery: Quick commerce, Hyperpure, Going-out, and advertising. - **Quick commerce stabilizes demand** during economic downturns due to essential goods focus. - Balances growth vs. profitability with **strong balance sheet ($1.7B cash as of Feb 2022)** and growth-first mindset. --- ### **Financial & Unit Economics Highlights** - **Going-out Business (Q1 FY26)**: - Annualized NOV: INR 8,000 crore (~20% of quick commerce + food delivery size). - NAOV: >INR 1,700; ARPO: INR 160+. - Projected: $3B NOV & $150M EBITDA in 5 years. - **Blinkit**: - Delivers 25,000+ SKUs in select locations; expanded beyond groceries to electronics, beauty, pets, toys. - AOV limited by customer preference for **low-involvement, urgent purchases** despite expansion. - **Unit Economics**: - New customer cohorts reach **contribution break-even in Month 1**. - Revenue per new customer (net of subsidies): >INR 100 in first month, increases over time. - New quick commerce stores ramp to breakeven in line with historical trends. --- ### **Technology & Ecosystem** - AI/ML-powered personalization, demand forecasting, and delivery optimization. - Invested in ecosystem partners to strengthen capabilities: - **UrbanPiper (5% stake)**: B2B SaaS for restaurant POS integration. - **AdOnMo (19% stake)**: Hyperlocal digital advertising. - **Shiprocket (8% stake)**: Logistics tech for D2C brands. - **Magicpin (16% stake)**: Omni-channel retail engagement. - **Byondnxt (8% stake)**: Kitchen appliances; **Mukunda Foods (16% stake)**: Smart kitchen robotics. - Strategic goal: build interconnected ecosystem rather than a "super app." --- ### **Leadership & Strategy Outlook (Oct 2025)** - Prioritizing **efficiency over speed** in expansion; growth is guided by internal capacity and unit economics. - Target **value-conscious customers** (not price-sensitive): value defined as **speed, assortment, support, then price**. - Long-term margins prioritized over short-term optimization; **sustainable growth enabled by strong balance sheet**. - “Super brand” strategy: focused verticals like District, Blinkit, Hyperpure over bundled platform.