ETtech Explainer: Why is Zomato parent Eternal capping foreign ownership at 49.5%?

Zomato and Blinkit’s parent company, Eternal, is reworking its ownership structure to become a domestically controlled entity. The company’s board has proposed capping foreign ownership at 49.5%—a move that paves the way for its quick commerce arm, Blinkit, to move away from a pure marketplace model and start holding inventory directly.

What changes for Eternal and Blinkit?

By becoming a majority Indian-owned company, Eternal can now follow a different set of rules that allow more flexibility.

As of March 31, Indian investors, including mutual…