Zomato is set to pay ₹2,048 crore to acquire Paytm’s movie and events ticketing businesses, according to a BSE filing. This Paytm-Zomato deal will benefit Zomato in expanding its presence in the entertainment industry, while Paytm will refocus on its core banking services.
In accordance with the agreement, Paytm will transfer its ticketing platforms, TicketNew and Insider, as well as 280 of its workers to Zomato. These assets, which Paytm paid ₹268 crore for in 2017 and 2018, now have a combined gross order value (GOV) of ₹2,000 crore for fiscal year 2024.
Why did Paytm take this step?
According to Paytm, this move enables them to focus more on their primary payment and financial services.
One97 Communication Ltd (OCL) stated regarding the Paytm-Zomato Deal, “The decision to sell off its entertainment tickets division highlights Paytm’s commitment to its core focus of processing payment and distributing financial services. Recently, Paytm has expanded into insurance, equity broking and wealth management, presenting substantial offers to cross-sell and strengthen its position in the financial services sector.”
“This strategic shift allows us to focus on the long-term growth in our core areas and drive value creation for all stakeholder,” a Paytm spokeswoman said in her statement.
How will this deal help Zomato?
The purchase is made at a time when Zomato’s stock has increased by over 100% this year, driven by company’s expanding quick commerce business in India. Analysts at Bank of America noted that this deal fits nicely with Zomato’s broader strategy to diversify its offerings.
They contend that Zomato’s goal of becoming a full platform for eating and entertainment experiences could be significantly aided by the acquisition.
Zomato CEO Deepinder Goyal stated, “This isn’t entirely new for us, as we’ve been involved in ticketing for over a year and have been looking to expand its use cases. To recap, our ‘going-out’ business, encompassing both dining and event ticketing, has a 136% increase in GOV from the previous year to ₹3,225 crore in FY24.”
Zomato to launch ‘District’
Earlier this month, Zomato unveiled ‘District’, a new app that aims to combine its dining and movie and event tickets, to integrate its going-out division. In the upcoming weeks, this app will go live for everyone.
While Paytm will continue to offer ticketing and entertainment options for the next year, customers will be referred to Zomato’s new app, “District”. Zomato will provide incentives to its customers, to encourage this transition.
With ‘District’, Zomato is broadening its range of lifestyle, going outside of its primary business of food delivery.
Naina Jaggi is an author deeply rooted in Journalism, mainly writing on lifestyle, entertainment, travel, politics and financial markets. This diverse experience has allowed her to blend rich details with engaging narratives that capture the essence of various worlds. When she is not crafting tales, you’ll find her immersed in music and enjoying the company of dogs. She is also into K-dramas, thriller and horror movies that fuel her imagination, bringing the same spark to her stories.
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