Zomato will expand beyond food delivery by acquiring Paytm’s movie ticketing and events division for Rs 2,048 crore in cash. This move strengthens Zomato’s “going-out” offerings, including dining, live events, and movie ticketing.
Zomato’s Strategic Expansion
This acquisition is part of Zomato’s plan to diversify its revenue streams. As food delivery growth stabilizes, Zomato is focusing on the entertainment sector. Previously, Zomato invested in quick commerce, acquiring Blinkit in 2022.
Acquisition Details
Zomato will acquire Paytm’s entertainment ticketing business, managed by Orbgen Technologies and Wasteland Entertainment. About 280 Paytm employees will also join Zomato. This move ensures continuity in the new business.
Paytm will continue offering ticketing services on its platform for 12 months. This transition period ensures a smooth experience for users.
Zomato’s “District” App and Future Plans
Zomato also plans to launch a new app called “District.” This app will focus on the going-out business, expanding Zomato’s consumer offerings.
Financial Overview and Advisory Support
Paytm’s ticketing business, built from scratch, was strengthened by acquiring TicketNew and Insider in 2017 and 2018 for Rs 268 crore. In FY24, it generated Rs 297 crore in revenue. Despite this, Paytm reported a net loss of Rs 1,422 crore, contributing to its total revenue of Rs 10,524 crore.
The transaction is expected to close within this quarter. Paytm has received advisory support from Deloitte India, Morgan Stanley, and Luthra & Luthra.
Zomato’s Commitment to Entertainment
This acquisition shows Zomato’s commitment to becoming a key player in the entertainment and events industry. It marks a significant step in Zomato’s growth.