Zomato Founder Steps Down as CEO in Major Shakeup

Deepinder Goyal, the co-founder and CEO of Indian food delivery giant Zomato and its parent firm Eternal, stepped down from his executive role on Wednesday to hand the reins to Blinkit chief Albinder Dhindsa as the company’s quick-commerce business experiences explosive growth.

A Strategic Shift to Long-Term Innovation

While stepping back from day-to-day operations, Goyal will transition to the role of vice chairman on Eternal’s board. This move is designed to free him up to focus on what he describes as “higher-risk exploration and experimentation,” ventures that are traditionally difficult to execute under the strict oversight and short-term expectations of a publicly traded company.

“This is a change in title, not in commitment toward outcomes,” Goyal clarified in a recent letter addressed to Eternal’s shareholders. “Eternal remains my life’s work.”

From FoodieBay to Market Dominance

Goyal’s journey began in 2008 when he co-founded the company alongside Pankaj Chaddah. Initially launched as a restaurant discovery and review portal named FoodieBay while both founders were employed at Bain & Company, they left their corporate jobs in 2009 to pursue the venture full-time. The brand was renamed Zomato in 2010 to avoid trademark conflicts with eBay, eventually pivoting into the food delivery space in 2015.

Following Chaddah’s departure in 2018, Zomato aggressively consolidated its market share. Key milestones included the acquisition of Uber Eats’ India operations in 2020 and the $568 million acquisition of quick-commerce platform Blinkit (formerly known as Grofers) in 2022.

Unprecedented Financial Growth Fuelled by Blinkit

This leadership transition coincides with stellar financial performance. Eternal recently reported a 73% year-over-year surge in third-quarter profit, reaching ₹1.02 billion (approximately $11.13 million). Adjusted revenue skyrocketed by 190% to ₹166.92 billion (around $1.8 billion) compared to the same period last year.

Blinkit continues to be the primary engine of this growth. The quick-commerce division saw its net order value climb 121% to ₹133 billion (roughly $1.45 billion) in the last quarter alone, underscoring its massive potential.

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Goyal’s Side Ventures and Industry Challenges

Outside of his responsibilities at Eternal, Goyal has been diversifying his professional portfolio. His recent endeavors include Continue Research, a venture focused on longevity, and “Temple,” an experimental brain-health wearable device. He is also a co-founder of the aviation startup LAT Aerospace and remains an active angel investor.

The Rising Influence of Quick Commerce

Dhindsa’s appointment highlights the shifting power dynamics within Eternal, as quick commerce begins to overshadow the company’s legacy food delivery business. However, this rapid expansion comes amid heightened regulatory scrutiny regarding the welfare of gig workers. India’s labor ministry recently pressured quick-commerce platforms to abandon aggressive marketing campaigns like “10-minute delivery” and urged companies to implement better working conditions and safety measures for delivery personnel.