Foodtech major Zomato Limited (now Eternal Limited) has received approval from its board of directors to cap the foreign ownership of the company at 49.5%. The announcement comes to maintain status as an Indian-Owned and Controlled Company (IOCC) under the FEMA regulations.
The board of directors of Eternal has approved the special resolution to cap the total foreign ownership at 49.5%, including foreign direct investments (FDI), foreign portfolio investments (FPI), and non-resident individuals (NRIs) on a fully diluted basis.
Why does Zomato want to curb foreign ownership?
As of now, Eternal’s quick commerce platform, Blinkit, doesn’t own the inventory or products. It operates as a marketplace and just connects the buyers and sellers via its platform.
If Eternal becomes IOCC under FEMA, it will allow Blinkit to switch to the inventory-led business model. With this, the platform will be able to stock its own inventory.
As per the FDI rules, e-commerce platforms having majority foreign ownership (more than 50%) are not allowed to stock their own inventory. Due to this rule, these platforms rely on third-party operators to run the dark stores where products are stored and shipped from.
Why is this important?
Limiting the foreign ownership in the Eternal will allow Blinkit to store its own inventory and sell those products to the consumers, which will contribute to better control over products, supply chain, and margins.
In simple terms, it will allow the platform to introduce new product categories which are underrepresented on the quick commerce platforms as of now, purchasing the inventory directly from the small Indian manufacturers to strengthen local supply chains, and better product availability as per the demand of consumers which will significantly contribute to the better profit margins.
How much more can Blinkit make?
If we assume that the take rate of Blinkit is 18.5% in 2024 and 2025, which will potentially improve to 19.5% in 2026, post-switching to the inventory-led model.
A 0.5% improvement in the take rate, especially in a high-volume business, can convert into better margins despite a moderate growth in GMV.
Take rate: This refers to the commission or fee charged as a percentage of GMV for facilitating a transaction between a buyer and seller.
| Metric | 2024 | 2025 | 2026 |
| GMV (₹ Cr) | 12,469 | 24,938 | 38,654 |
| Take Rate (%) | 18.5% | 18.5% | 19.0% |
| Revenue (₹ Cr) | 2,307 | 4,738 | 7,344 |
| EBITDA Margin (%) | 6.0% | 6.5% | 6.5% |
| EBITDA (₹ Cr) | 138 | 308 | 477 |
| Difference (₹ Cr) | 169 | ||
Source: Internal calculation
Foreign ownership trend in Eternal
As of March 2022, the foreign ownership in Eternal was at 10.44%, which significantly increased to 57.87% in the second quarter of FY23, or September 2022. Since then, the foreign ownership remained over the 50% mark until Q2 FY25 or September 2024.
| Quarter | FIIs ownership |
| Mar 2022 | 10.44% |
| Sep 2022 | 57.87% |
| Mar 2023 | 54.61% |
| Mar 2024 | 55.11% |
| Sep 2024 | 52.53% |
| Dec 2024 | 47.31% |
| Mar 2025 | 44.36% |
Source: Screener.in
In November 2024, the foodtech company raised ₹8,500 crore through a Qualified Institutions Placement (QIP). Following this fundraise, the foreign ownership in the company was reduced under 50% and recorded at 47.31% at the end of December 2024.
As of March 2025 or at the end of FY25, FIIs own 44.36% stakes in Eternal. Among FIIs, Antfin Singapore Holding Pte. Ltd. is the largest shareholder with a 1.95% stake, followed by Camas Investments Pte. Ltd. with 1.74% shares. DIIs own 23.47% shares of the company, while 26.08% stakes are owned by the public.
Financial Performance of Eternal
Zomato’s parent company, Eternal, recorded 61.3% YoY growth in revenue to ₹5,657 crore during the third quarter of FY25 as compared to ₹3,507 crore booked in the same quarter of the previous year. Its total expenses also increased at a similar pace (63.6%) to ₹5,533 crore during the quarter.
The company’s profit after tax, however, dropped by 57.2% to ₹59 crore in Q3 FY25 in contrast to ₹138 generated a year ago.
| Financials | Q3 FY25 (₹ Cr) | Q3 FY24 (₹ Cr) | YoY Change |
| Revenue | 5,657 | 3,507 | 61.3% |
| Expense | 5,533 | 3,383 | 63.6% |
| Profit | 59 | 138 | -57.2% |
Source: Company filings
In terms of revenue breakdown, Eternal’s food ordering and delivery vertical contributed 38.3% to the total operating revenue, hyperpure supplies (B2B business) formed 30.9% of the total, while Blinkit collected 25.9% of the total.
| Segment revenue | Q3 FY25 (₹ Cr) | % of revenue |
| Food ordering and delivery | 2,072 | 38.3% |
| Hyperpure supplies (B2B business) | 1,671 | 30.9% |
| Blinkit (Quick commerce) | 1,399 | 25.9% |
| Going Out | 259 | 4.8% |
| Others | 4 | 0.1% |
| Total | 5,405 | 100% |
Source: Company filings
Eternal’s stock price movements
Eternal’s share price has surged 9.35% year-to-date (since January 2025), as of April 29, 2025. In the last 12 months, it has increased investors’ wealth by over 22%. As of today, the stock is at ₹231.16 per share while its market cap stands at ₹2.10 trillion. Its rival, Swiggy’s share price is at ₹319.65 with a market cap of ₹736.15 billion.
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