Zomato, a foodtech and quick commerce platform, is going to buy Paytm’s movie and ticketing division. For the previous three months, the two companies have been carrying out the transaction. The Gurugram-based company’s first significant acquisition since Blinkit in June 2022 is this one.
According to a disclosure made to the Bombay Stock Exchange (BSE), Paytm has agreed to sell its entertainment ticketing business to Zomato for a cash price of Rs 2,048 crore, or $244 million.
One97 Communications, the parent company of Paytm, will give Zomato a 100% ownership stake in its two subsidiaries, Orbgen Technologies (TicketNew) and Wasteland Entertainment (Insider), as part of the agreement.
Additionally, 280 current workers from the two subsidiaries, Insider and TicketNew, will be included in the deal. For background, the company led by Vijay Shekhar Sharma purchased Insider in May 2017 and Paytm acquired TicketNew in 2018 for $40 million.
In FY24, the company brought in Rs 297 crore in revenue and had an adjusted EBITDA of Rs 29 crore, as disclosed.
During the transition period, the Paytm app will be the platform for the entertainment ticketing business to operate for up to 12 months. This includes movie, sports, and live event ticketing. Assuming all agreed terms are fulfilled, the transaction is anticipated to close this quarter.
The transaction is representative of the current state of affairs for the two companies. Paytm has been struggling for a long time, but Zomato never seems to miss a beat. Its ability to wring the value it deserves from these businesses may be a testament to its own work ethic and ability to get things done, something many may have forgotten. Zomato is hoping that its latest acquisitions will help it maintain its winning streak. They will understand that, in contrast to Paytm, this is the least expected of them following their huge success with Blinkit.
