Eternal’s Enterprise AI Turn: Why The Zomato Parent Spun Out Nugget

Eternal, the parent company of Zomato, has spun out its enterprise AI venture, Nugget, into a separate legal entity called Carthero Technologies Private Limited (CTPL) in a slump sale for ₹35 Cr. This move represents a significant shift for Eternal, as Nugget has evolved into a standalone business with a focus on providing conversational AI, voice assistants, workflow automation, and agentic AI solutions to external enterprises.

Initially developed to address customer support and sales challenges within Zomato, Nugget has expanded its offerings to cater to a diverse range of industries, including large private banks, insurance companies, retail brands, e-commerce platforms, and even Zomato's direct competitor, Swiggy. Despite being just one year old, Nugget has already achieved impressive milestones.

In its first year of operation, the company generated ₹7.2 Cr in revenue, indicating that its internal experiment is now starting to contribute to Eternal's overall revenue stream. The company's growth trajectory has been driven by its ability to deliver measurable business outcomes through AI-powered solutions. In Q1 FY27, Eternal disclosed that Nugget's revenue stood at ₹7.2 Cr, showcasing the commercial potential of the platform.

The company has undertaken a structural shift by spinning Nugget out as a separate legal entity under CTPL, signaling a commitment to building a distinct business category that could complement Eternal's core consumer internet offerings. Garg, the head of Nugget, emphasized that the decision to spin out Nugget was driven by the realization that the technology had matured beyond solving internal problems.

Now, Nugget is focused on commercializing its capabilities by offering specialized AI agents tailored to specific enterprise workflows. Financial services has emerged as one of Nugget's fastest-growing opportunities, with the platform already deployed for insurance companies to assist field sales executives. This demonstrates the versatility of Nugget's AI solutions, which can be adapted to address unique operational challenges across various industries.