Zomato has officially acquired Paytm’s entertainment ticketing business for ₹2,048 crore, a strategic move aimed at bolstering its “going-out” category. This acquisition, approved during a board meeting on August 21, 2024, will see Zomato integrate Paytm’s movie and events ticketing platforms into its existing services, further expanding its footprint in the entertainment sector.
The transaction involves the purchase of the entertainment ticketing business from One97 Communications Limited (Paytm’s parent company) and its subsidiaries, Orbgen Technologies Pvt Ltd (OTPL) and Wasteland Entertainment Pvt Ltd (WEPL). Zomato will execute the acquisition through a share purchase and subscription agreement, which includes a cash infusion into the subsidiaries and the acquisition of their entire stakes, resulting in them becoming wholly owned by Zomato.
Zomato’s move aligns with its strategy to enhance its offerings in the entertainment space, which has seen significant growth recently. The company reported a 200% increase in gross order value in its “going-out” business, which includes dining and event ticketing, reaching ₹1,069 crore in the last quarter. This acquisition is expected to strengthen Zomato’s position against competitors like BookMyShow in the ticketing market.
During a transition period of up to 12 months, Paytm will continue to offer movie and event tickets on its app, ensuring a smooth handover for users. This arrangement allows Zomato to gradually integrate the acquired services into its platform while maintaining customer access.
On August 1, Zomato announced the launch of ‘District,’ a new app consolidating the “going-out” business, including dining and ticketing for movies and events. This move marks Zomato’s entry into a broader array of lifestyle services within a single platform. The company’s founder, Deepinder Goyal, stated, “Today, Zomato and Blinkit are our two large consumer businesses, serving customers’ needs at home. However, we also have one of India’s largest ‘going-out’ businesses, helping our customers discover restaurants for dining out.”
Goyal emphasized the potential for expansion in the going-out segment, saying, “We believe that there is an opportunity to further expand our going-out offering, building on top of our dining-out business. Additional use cases for customers in the going-out space include movies, sports ticketing, live performances, shopping, staycations, etc.”
This acquisition not only reinforces Zomato’s commitment to the “going-out” category but also positions it as a formidable player in the entertainment ticketing landscape. The successful integration of Paytm’s ticketing business is anticipated to be completed within 90 days, pending the fulfillment of agreed conditions.
