MUMBAI: Paytm will sell its entertainment ticketing business, including the Insider platform, to Zomato for Rs 2,048 crore as the fintech looks to divest its non core assets. Paytm, which has faced regulatory scrutiny, will focus on its core payments and financial services distribution businesses, the company said in a stock exchange filing on Wednesday.
Paytm’s TicketNew and Insider platforms, which house the firm’s entertainment ticketing business spanning movies, sports and live performance ticketing, will be transferred to Zomato. As part of the deal, about 280 employees of Paytm’s entertainment ticketing division will also move to Zomato. During the transition period (up to a year), the movie and events ticket will continue to be available on the Paytm app as well as TicketNew and Insider platforms.
The transaction, Paytm said, will generate profits for the company and the cash proceeds will bolster its balance sheet. TOI had reported in June that Paytm was in advanced stages of discussion to sell its movie and events ticketing business to Zomato in a deal valued at close to Rs 2,000 crore. The fintech’s entertainment ticketing business generated revenues of Rs 297 crore in FY24 and more than 10 million unique customers used the platform to buy tickets.
For Zomato, the deal would fit in well with and give a leg-up to its ‘going-out’ business. The food delivery firm already offers discovery and ticketing of offline experiences such as in-restaurant dining and live events like Zomaland.
Zomato co-founder and CEO Deepinder Goyal said that the acquisition will allow the company to offer newer use cases (like movie and sports ticketing) to customers and also scale to the business.
“We believe, over the next decade and beyond, going-out experiences will continue to grow strongly in lockstep with overall growth in lifestyle and consumption… it (the acquisition) makes us more relevant for our customers which also gives us an opportunity to spin off the business into a new app (which will be called District) which could be a game changer for each of these use cases,” Goyal said in a letter to shareholders. Zomato’s going-out business recorded Rs 3,225 crore in gross order value in FY24. The acquisition will also pit Zomato against players like BookMyShow.
“We built the entertainment ticketing business by addressing the market needs of the time… as it transitions to Zomato ownership… this move allows us to continue focusing on long-term growth in our core areas and value-creation for all stakeholders,” said a Paytm spokesperson.
The fintech has been expanding its offerings in insurance, equity broking and wealth distribution in recent quarters to grow its market presence as a strong financial services distribution player. Paytm, after RBI’s move to slap severe restrictions on its banking unit earlier this year due to persistent non-compliance, saw its losses widen to Rs 840 crore in the June quarter on a consolidated basis from Rs 358 crore in the year-ago period.
Paytm’s TicketNew and Insider platforms, which house the firm’s entertainment ticketing business spanning movies, sports and live performance ticketing, will be transferred to Zomato. As part of the deal, about 280 employees of Paytm’s entertainment ticketing division will also move to Zomato. During the transition period (up to a year), the movie and events ticket will continue to be available on the Paytm app as well as TicketNew and Insider platforms.
The transaction, Paytm said, will generate profits for the company and the cash proceeds will bolster its balance sheet. TOI had reported in June that Paytm was in advanced stages of discussion to sell its movie and events ticketing business to Zomato in a deal valued at close to Rs 2,000 crore. The fintech’s entertainment ticketing business generated revenues of Rs 297 crore in FY24 and more than 10 million unique customers used the platform to buy tickets.
For Zomato, the deal would fit in well with and give a leg-up to its ‘going-out’ business. The food delivery firm already offers discovery and ticketing of offline experiences such as in-restaurant dining and live events like Zomaland.
Zomato co-founder and CEO Deepinder Goyal said that the acquisition will allow the company to offer newer use cases (like movie and sports ticketing) to customers and also scale to the business.
“We believe, over the next decade and beyond, going-out experiences will continue to grow strongly in lockstep with overall growth in lifestyle and consumption… it (the acquisition) makes us more relevant for our customers which also gives us an opportunity to spin off the business into a new app (which will be called District) which could be a game changer for each of these use cases,” Goyal said in a letter to shareholders. Zomato’s going-out business recorded Rs 3,225 crore in gross order value in FY24. The acquisition will also pit Zomato against players like BookMyShow.
“We built the entertainment ticketing business by addressing the market needs of the time… as it transitions to Zomato ownership… this move allows us to continue focusing on long-term growth in our core areas and value-creation for all stakeholders,” said a Paytm spokesperson.
The fintech has been expanding its offerings in insurance, equity broking and wealth distribution in recent quarters to grow its market presence as a strong financial services distribution player. Paytm, after RBI’s move to slap severe restrictions on its banking unit earlier this year due to persistent non-compliance, saw its losses widen to Rs 840 crore in the June quarter on a consolidated basis from Rs 358 crore in the year-ago period.
