Zomato, a well-known food delivery service, is in advanced talks to acquire Paytm’s movie ticketing and events division.
As per a report by The Economic Times, the deal could value Paytm’s business at approximately Rs 1,500 crore.
This move aims to strengthen Zomato’s presence in the “going out” sector which already provides discovery and ticketing services for offline experiences like in-restaurant dining and live events such as Zomaland.
Zomato’s interest in acquiring Paytm’s events and movie ticketing business aligns strategically with its goal to meet consumer needs across various categories, including food, grocery, and entertainment.
If Zomato’s reported acquisition of Paytm’s events and ticketing business goes through, it would be the second largest purchase in Zomato’s history, following their 2021 acquisition of Blinkit (formerly Grofers) for around Rs 4,447 crore.
Also, the company is expanding its focus on quick commerce by planning to invest an additional Rs 300 crore into its subsidiary Blinkit, as competition heats up. This move raises Zomato’s total investment in Blinkit to over Rs 2,300 crore.
In a separate filing, Paytm also confirmed that discussions are underway, without directly mentioning Zomato. Paytm mentioned that the potential transfer of its entertainment business, which falls under its marketing services, is one of the options being looked into.
Paytm is going to focus on payment and financial services, along with digital goods commerce. It highlighted that any ongoing discussions are at an early stage and not legally binding, similar to Zomato’s statement.
Also Read: Zomato Surrenders Payment Aggregator Licence
The report also mentioned that regulatory requirements have forced Paytm to form new partnerships with other lenders. According to Bloomberg, no final decision has been made yet.
Although Paytm does not provide separate figures for its movie and events ticketing business, it reported annual sales of 17.4 billion rupees ($208 million) for the financial year ending March 2024 in its broader marketing services segment, which includes this business along with credit card marketing and gift vouchers.
A successful sale would allow Paytm to focus on travel, deals, and cashback, which are essential areas for growing its merchant base and increasing overall sales.
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