Startups rebrand parent firms to signal scale

India’s startup ecosystem is in the middle of an identity shift. There is a trend of rebranding of companies, which, for many, signals ambition and readiness to get into newer businesses.

- UDISHA SRIVASTAV

Investors and brand strategists opine that changing the names of parent entities enables companies to signal their scale, position themselves as multi-segment businesses rather than single-product ventures, and simplify their structures ahead of initial public offerings (IPOs).

‘The latest to join this rebranding wave is Oravel Stays Limited, the parent company of OYO, which earlier this month unveiled a new corporate identity — PRISM. The shift is symbolic. OYO may still be the brand, where consumers book their hotels on, but PRISM is meant to represent the group’s larger canvas, a reflection of founder Ritesh Agarwal’s vision of a “future-ready” corporate architecture.

Not long ago, food delivery platform Zomato also changed the name of its parent entity to Eternal. On a global level, Google changed its name to Alphabet, and Facebook transitioned to Meta.

‘Angel investor Lloyd Mathias, who also sits on the boards of several firms, said that rechristening the names of parent entities allows companies to have a full spectrum of brands within their ecosystem while also being able to ring-fence the core product.