New Delhi: Zomato is expanding its horizons by acquiring Paytm’s entertainment ticketing business for Rs 2,048 crore, a deal announced on Wednesday, August 21. This strategic move will help Zomato strengthen its position in the “going-out” sector. Meanwhile, Paytm which is facing challenges will now focus more on its core financial services.
Both of these companies’ boards gave the green light to this cash transaction on August 21, as shared with the exchanges. One 97 Communications will transfer its movie ticketing business to its wholly-owned subsidiary, OTPL and its sports and events ticketing business to another subsidiary , WEPL through a slump sale, as per the agreement.
"As part of this agreement, OCL will transfer its entertainment ticketing business to Zomato by 1) Transfer of OCL’s entertainment ticketing business to it’s 100% subsidiaries, Orbgen Technologies Pvt Limited (OTPL) and Wasteland Entertainment Pvt Ltd (WEPL), and 2) Selling 100% stake in its subsidiaries OTPL and WEPL, which operate the TicketNew and Insider platforms, respectively to Zomato. The transfer will also include ~280 existing employees from the entertainment ticketing business," Paytm announced this in a filing with the exchange.
Paytm’s entertainment ticketing segment which covers movies, sports and event bookings has seen remarkable growth and generated Rs 297 crore in revenue and an Adjusted EBITDA of Rs 29 crore in FY24, according to the company.
Paytm entered this market by launching a movie ticketing platform and later expanded by acquiring Insider and TicketNew for Rs 268 crore between 2017 and 2018. On the NSE, Zomato’s shares dropped 1.3 per cent to Rs 259.77 while Paytm’s shares inched up by 0.18 per cent to Rs 574.90 apiece.
