Zomato to purchase Paytm’s entertainment ticketing business for Rs 2,048 crore
PTC News Desk: Struggling fintech giant Paytm has finalised a deal to sell its entertainment ticketing business to foodtech leader Zomato for Rs 2,048 crore in an all-cash transaction. This agreement underscores the value Paytm has created in the entertainment sector, offering choice and convenience to millions of Indians, according to a Paytm statement. The transaction is expected to close within the current quarter (Q2 FY25), pending the satisfactory completion of all closing conditions.
On August 21, Zomato’s board approved the acquisition of Paytm’s movie and events ticketing businesses. The move is part of Zomato's broader strategy to enhance its 'going-out business,' with plans to launch a new app, 'District,' to support this growth. Zomato has also set a 90-day timeline for finalising the deal.
Under the terms of the agreement, Paytm will transfer its movie ticketing business to its subsidiary Orbgen Technologies Pvt Ltd (OTPL) and its sports and events ticketing business to another wholly-owned subsidiary, Wasteland Entertainment Private Ltd (WEPL). Zomato will then acquire a 100 per cent stake in these two subsidiaries, assuming ownership of both entities. Approximately 280 employees from Paytm’s entertainment ticketing division will join Zomato as part of the transaction.
The deal values Paytm’s movie ticketing business at Rs 1,264.6 crore and its event ticketing business at Rs 783.8 crore. Paytm has stated that this sale will enable the company to refocus on its core payments and financial services, with plans to substitute the revenue from the entertainment segment through the expansion of its core offerings.
In a statement, Paytm expressed gratitude to its team for building the entertainment ticketing business and noted that the transition will allow the company to concentrate on long-term growth in its primary areas. Tickets will remain available on the Paytm app during the transition period. For FY24, Paytm’s ticketing business reported revenue of Rs 297 crore and an adjusted EBITDA of ₹29 crore.
Zomato’s filing revealed that OTPL had a turnover of Rs 13.14 crore and WEPL had a turnover of Rs 236 crore for the year ending March 2024.
This sale follows earlier reports that Paytm had discussed selling its movie and events business to Zomato for Rs 1,500 crore. At that time, Paytm had only acknowledged considering a potential transfer.
Paytm, a major player in the online ticketing market alongside BookMyShow, previously acquired a majority stake in Insider.in for around Rs 35 crore in 2017 and the Chennai-based platform TicketNew in 2018 to expand its market presence.
The sale occurs amid significant financial challenges for Paytm, which has faced losses following a Reserve Bank of India (RBI) directive that halted new customer onboarding and fresh deposits for its payments bank arm. Paytm’s revenue from operations dropped 36% year-on-year to Rs 1,502 crore in Q1 FY25, while its net loss surged 134 per cent to Rs 840.1 crore from ₹358.4 crore in the same period last year.
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- With inputs from agencies
