Published: 22nd Aug 2024
By: Value Research
Zomato will buy Paytm’s movie ticketing and events business for Rs 2,048 crore. As part of the deal, One97 (Paytm parent) will first transfer the entertainment ticketing business to its subsidiaries Orbgen Technologies (runs TicketNew) and Wasteland Entertainment (Insider platform operator). Zomato will then acquire both these subsidiaries.
The acquisition is expected to yield positive outcomes for both Paytm and Zomato. The next few slides explain how.
Post the deal, Zomato will become the second-largest player in the ticketing industry (behind BookMyShow). It further aims to consolidate its market share by converting over 10 million unique customers inorganically to its going-out platform ‘District’.
This move is also expected to help Zomato create meaningful synergy between its food ordering, quick commerce and the newly-bought ticketing businesses.
By selling off its ticketing business, Paytm aims to completely focus on improving its payments and financial services segments, which have struggled in recent years.
Paytm invested around Rs 410 crore in its entertainment business, and will now be earning roughly 5 times from its sale. With this, Paytm now has over Rs 9,500 crore in cash. It remains to be seen how the company will use this sum.