In order to increase revenue streams, Eternal-owned District, a distinct service that was first introduced for its dining and going out businesses, has subtly entered the fashion industry by introducing clothing, accessories and apparel on its app, said a report by IndianStartupNews (ISN).

Amazon Fashion, Walmart’s Flipkart and Myntra, Nykaa, its Fashion division and the massive Reliance Retail-owned Ajio will now also compete against Eternal. The District app verified the launch.

At first, the app, which was spun off as a distinct vertical before merging with Paytm Insider, only intended to sell movie and event tickets on its platform; it made no indications that it would fully embrace e-commerce.

This comes after Eternal reported a 70% increase in revenues to Rs. 7,167 crore (US $ 830 million) from Rs. 4,206 crore (US $ 487 million) in Q1 FY26, despite a 90% decline in earnings to Rs. 25 crore (US $ 2.89 million). This increase was mostly due to the company’s outstanding success in Blinkit and its B2B platform, Hyperpure.

Continued investments in Eternal’s rapidly expanding quick commerce segment and "going-out" businesses hurt the company’s profitability despite strong top-line growth. A 42% year-over-year decline in adjusted EBITDA to Rs. 172 crore (US $ 19.92 million) was attributed by CFO Akshant Goyal to these initiatives.

Zomato parent Eternal’s District vertical reportedly enters fashion industry

Eternal, parent company of Zomato, has expanded its District vertical into the fashion industry by launching a clothing and accessories app, competing with Amazon, Flipkart, Myntra, Nykaa, and Ajio. The move follows a 70% revenue increase but a 90% decline in earnings, attributed to investments in quick commerce and 'going-out' businesses.