Zomato clarifies after SEBI pulls company up; says restructuring news was internal communication

Zomato, in a clarification to BSE, has stated that the news of its restructuring to a larger organisation was meant for internal communication. Following reports of its ‘Eternal’ restructuring scheme, capital markets regulator Securities and Exchange Board of India (SEBI) had asked Zomato to clarify on the same.  

The company stated that the news report quoted an internal communique that was not shared by Zomato with the media house. It was merely to communicate the vision for leadership structure. 

“In this regard, we would like to clarify that the alleged report has quoted an internal communication that has been shared by our Chief Executive Officer and Managing Director, Mr. Deepinder Goyal and was not shared by Zomato with Livemint. The message was intended to merely communicate the vision for leadership structure of the Zomato group as it continues to grow,” it said, further adding that Zomato believes that the internal communication is not material and does not mandate any disclosure.

It added that as and when required, Zomato will make all the necessary disclosures. 

The clarification comes after reports stated that Zomato, helmed by Deepinder Goyal, will have multiple CEOs, under a larger organisation called ‘Eternal’. He said that from a company headed by him, Zomato will transition into a company with multiple CEOs for each of their businesses – all acting as peers. 

“We are transitioning from a company where I was the CEO to a place where we will have multiple CEOs running each of our businesses, all acting as peers to each other, and working as a super team with each other towards building a single large and seamless organisation. Starting today, we are going to call this larger organisation ‘Eternal’,” Goyal had said in his letter to his employees, quoted by multiple media reports.

He added that Eternal will have multiple companies, including Zomato, Blinkit, Hyperpure, and Feeding India. “Eternal will be an internal name for now,” he said, adding that the logo will start appearing at a few places in their office.

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Also read: Tiger Global cuts stake in Zomato a day after Uber offloaded entire share

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