In a surprising revelation, Deepinder Goyal, the founder and CEO of Eternal which owns Zomato and Blinkit, disclosed that he once asked Albinder Dhindsa, the founder and CEO of Blinkit, to quit his position. This admission came during a candid conversation with podcaster Raj Shamani, where Goyal addressed the internal conflicts and intense scrutiny that followed Zomato's high-profile acquisition of the quick-commerce platform.
The Acquisition and the Conflict of Interest
Zomato's acquisition of Blinkit, originally known as Grofers, was finalized in 2022 in an all-stock deal valued at approximately ₹4,447 crore. The deal immediately drew significant criticism from investors and analysts, who questioned both the valuation and a potential conflict of interest. This stemmed from the fact that Goyal and Dhindsa had known each other since their school days.
At the time of the acquisition, Grofers was primarily operating on a next-day delivery model. The integration period coincided with the platform's ambitious pivot to a 10-minute delivery model and its rebranding to Blinkit. It was during this challenging transitional phase that tensions between the two leaders began to surface.
The 'Rock Bottom' Coaching Method
Goyal openly discussed the difficult conversations he had with Dhindsa, stating he directly told him he might not be the right leader for the organization's new direction. "I told him you will not be able to cut it. He said okay, this happened twice during that timeframe, and we started the transition," Goyal recounted in the podcast.
He described his unconventional approach as the 'rock bottom' style of coaching. Goyal explained that when patient guidance fails, he deliberately breaks down a person's defensive armor to spur change. "I call this rock bottom, where I hurt people like their self-confidence completely goes for a toss. I do this with people who have insane potential, but something in their head is coming in their way," he said. He claims a high success rate with this method, asserting that four out of five individuals emerge stronger from the experience.
From Criticism to Market Leadership
Despite the rocky start and internal friction, the strategic bet on Blinkit eventually paid off handsomely. Following the deal, Zomato's stock price plummeted by nearly 75%, reflecting market skepticism. However, the combined efforts of both teams transformed Blinkit into a dominant force in India's booming quick-commerce sector.
Goyal expressed his early conviction in the Blinkit model, citing its addictive convenience. "I had never personally experienced a service, which was as addictive as Blinkit. The kind of convenience that we were getting was crazy. I knew this would become a business and people would love it," he stated. This vision has materialized, as Blinkit is now the largest business within the Eternal portfolio in terms of net order value, marking a dramatic turnaround from its controversial beginnings.
