When entrepreneurs build startups, owning a smaller percentage of a much larger company can often be more valuable than owning a large share of a small business. The journey of Deepinder Goyal, the co-founder and CEO of Eternal Limited, is a textbook example of this principle.
According to public shareholding data, Deepinder Goyal's ownership in the company has reduced significantly over the years—from nearly 50% in the early days of Zomato to around 4.4% today. While the decline in ownership percentage may appear dramatic, it is a natural consequence of the company's fundraising journey and transformation into one of India's largest listed technology firms.
Every time a startup raises capital, it typically issues new shares to investors. As a result, existing shareholders, including the founders, own a smaller percentage of the company. This process is known as equity dilution. Although founders see their ownership percentage decrease, the fresh capital enables the business to expand, hire talent, invest in technology, enter new markets, and accelerate growth.
Zomato, now rebranded as Eternal Limited, raised funds through multiple investment rounds from venture capital firms, institutional investors, and strategic partners before eventually launching its Initial Public Offering (IPO). Each funding round diluted the founders' stake but simultaneously increased the company's valuation.
The result is a classic startup success story. Even though Deepinder Goyal now owns only about 4.4% of the company, that stake is estimated to be worth around ₹12,000 crore, based on the company's current market valuation. This illustrates one of the most important concepts in entrepreneurship: a smaller percentage of a highly valuable company can be worth significantly more than a majority stake in a smaller business.
Many globally successful founders have followed a similar path. Entrepreneurs such as Jeff Bezos, Mark Zuckerberg, Elon Musk, and others have also seen their ownership stakes decline over time as their companies raised capital and expanded. Despite dilution, the increase in enterprise value often results in their remaining shares becoming enormously valuable.
For startup founders, dilution is often viewed as a strategic trade-off rather than a loss. By giving up part of their ownership, they gain access to capital, expertise, strategic partnerships, and resources needed to build larger, more competitive businesses. Without external funding, scaling rapidly in highly competitive industries can be extremely challenging.
However, founders also need to strike the right balance. Excessive dilution can reduce their influence over key decisions, while insufficient fundraising may limit growth opportunities. Successful entrepreneurs carefully manage this balance throughout the company's lifecycle.
Deepinder Goyal's journey highlights an important lesson for aspiring entrepreneurs and investors alike. Ownership percentage alone does not determine wealth—the overall value of the company matters far more. As Zomato evolved into Eternal Limited and became one of India's most valuable consumer internet companies, Goyal's smaller ownership stake translated into immense personal wealth, demonstrating how long-term value creation often outweighs the impact of dilution.
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