Zomato Set to Acquire Paytm’s Movie and Event Ticketing Division for ₹2,048 Crore
In a significant move within the Indian tech and entertainment sectors, Zomato has agreed to purchase Paytm’s entertainment ticketing division, including movie and event ticketing services, for ₹2,048 crore. This acquisition marks a major shift as Paytm refocuses on its core payments and financial services.
In a significant move within the Indian tech and entertainment sectors, Zomato has agreed to purchase Paytm’s entertainment ticketing division, including movie and event ticketing services, for ₹2,048 crore. This acquisition marks a major shift as Paytm refocuses on its core payments and financial services.
Key Details of the Deal
- Transaction Overview: One97 Communications Limited, the parent company of Paytm, has confirmed the sale of its entertainment ticketing business to Zomato. The business, which covers movies, sports, and live events, will remain operational on the Paytm app for up to 12 months during a transition period.
- Financial Impact: The entertainment ticketing business reported a combined revenue of ₹297 crore and an Adjusted EBITDA of ₹29 crore for the fiscal year 2024. The sale is expected to generate substantial profits for Paytm, enhancing its financial stability.
- Background and Development: Paytm’s foray into the movie ticketing sector began in 2017, with the company subsequently acquiring Insider and TicketNew for ₹268 crore. These acquisitions helped Paytm become a significant player in the ticketing market, competing directly with BookMyShow.
- Strategic Shift: Paytm’s decision to divest its ticketing business aligns with its strategy to concentrate on its core operations in payments and financial services. This move follows a directive from the Reserve Bank of India to shut down its banking unit earlier this year.
- Zomato’s Growth Strategy: For Zomato, this acquisition is part of a broader strategy to expand its non-core businesses, which include restaurant table booking and events ticketing. These segments, although representing a small portion of Zomato’s revenue, have been among the fastest-growing areas for the company.
The transaction underscores a strategic pivot for both companies, with Paytm focusing on strengthening its core financial services and Zomato bolstering its presence in the event and ticketing sector.
Sources By Agencies
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