Zomato, a leading foodtech and quick commerce platform, is poised to acquire Paytm’s movies and ticketing business. The two companies have been working on the transaction for the past three months. This marks the first major acquisition for the Gurugram-based company since its purchase of Blinkit in June 2022.
Paytm has agreed to sell its entertainment ticketing business to Zomato for Rs 2,048 crore in cash, equivalent to $244 million, according to a disclosure made to the Bombay Stock Exchange (BSE).
As part of the deal, Paytm’s parent company, One97 Communications, will transfer 100% of its stakes in two subsidiaries: Orbgen Technologies (TicketNew) and Wasteland Entertainment (Insider) to Zomato.
The acquisition will also include 280 employees from the two subsidiaries, TicketNew and Insider. For context, Paytm acquired TicketNew in 2018 for $40 million, and Insider was brought under its wing in May 2017.
The entertainment ticketing business, encompassing movie, sports, and live event ticketing, will continue to operate on the Paytm app for up to 12 months during the transition period. The transaction is expected to be finalized within this quarter, pending the completion of all agreed terms.
This deal reflects the current situations of both companies. While Zomato continues to thrive, Paytm has faced prolonged challenges. The fact that Paytm managed to secure significant value from these businesses demonstrates its ability to persevere and adapt, a trait that might have been overlooked by some. Zomato, on the other hand, will aim to maintain its winning streak with this new acquisition, knowing that success is expected following the triumph with Blinkit.