Indian food delivery company considers reorganization changes

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IIndian food delivery company Zomato (ZOMT.NS) plans to make organizational changes under which each of its individual businesses would have its own CEO while the parent company would be renamed “Eternal”.

According to Reuters, Zomato CEO Deepinder Goyal said in an internal company memo that the company runs Zomato’s food delivery business along with other big businesses. These included Zomato’s proposed purchase of Blinkit, a grocery delivery startup; Hyperpure, a cooking and food ingredient supply company; and Feeding India, a non-profit organization that seeks to reduce hunger in the country.

“We are moving from a company where I was the CEO to a place where we will have multiple CEOs leading each of our companies…all acting as peers to each other,” Goyal said in the memo.

Zomato reported an increase in restaurant meal orders on its platform on Monday.

Zomato is one of the farms in the Indian Internet & E-Commerce ETF (NYSE Arca: INQQ)which aims to provide investment results which, before fees and expenses, generally correspond to the price and yield performance of the India Internet and Ecommerce Index.

EMQQ Global launched INQQ to capitalize on the rapid growth of the country’s digital and e-commerce sectors. In a press release announcing the launch of INQQ, EMQQ Global Founder Kevin T. Carter said, “India is an extraordinary investment opportunity and a central part of the industry’s growth story. e-commerce and digitalization in emerging and frontier markets beyond China,” adding, “India is the world’s third-largest and fastest-growing major economy, and we are excited to offer investors the first targeted approach to tap into this rapid history of India’s e-commerce and digitalization.

EMQQ Global noted that as the world’s third largest economy, India has recorded an average GDP growth of 7.5% per year and an average per capita income growth of over 500%. The country also contains the largest Gen Z population and the fastest growing middle class of any major economy.

Over the next decade, nearly 700 million people born between 1980 and the 2000s will enter their peak consumption years, fueling a massive wave of domestic demand. This demand will not be met through traditional consumer channels, but through the new age online economy, which touches every corner of society, from how we bank to how we order food.

INQQ has an expense ratio of 0.86%.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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