Eternal secures board nod to cap foreign ownership at 49.5%

MUMBAI: Eternal (formerly Zomato) has secured board approval to cap foreign ownership in the firm at 49.5%. The move, the company said, will allow it to retain its status as an Indian-owned-and-controlled company (IOCC), enabling greater operational flexibility particularly for the firm’s quick commerce business Blinkit.
With board nod in place, Eternal has approached its shareholders to seek approval for the same. As of March 31, domestic shareholding in the company stood at about 55%. “To ensure we retain our IOCC status, we are seeking an enabling approval from shareholders for a cap of up to 49.5% on foreign ownership, subject to applicable laws….being an IOCC will help unlock new opportunities in quick commerce,” Eternal said in a filing to the exchanges.
Eternal said that Blinkit currently operates as a third-party marketplace relying entirely on third-party sellers that own the inventory of goods sold on the platform. As an IOCC, it can transition towards an inventory-led model which will allow Blinkit to drive growth by introducing new, underserved categories which third-party sellers may not be currently investing in. Direct inventory ownership also allows better margins in categories like FMCG. “This change aligns with our strategy to optimise the assortment, quality and value mix for our customers in the quick commerce business,” Eternal said.
Eternal competes with Swiggy Instamart, Zepto and Tata’s BigBasket in the quick commerce space which is rapidly growing and expanding its coverage of categories on the back of rising consumer adoption, especially in the major metro cities. “Maintaining our IOCC status represents an important strategic lever that aligns with our long-term vision: to innovate faster, serve customers better, support local entrepreneurs and deliver stringer returns to shareholders,” the company said.