Paytm Sells Entertainment Ticketing Unit to Zomato

On Wednesday, one 97 Communications Limited, the parent company of the Paytm brand, announced that it would sell its entertainment ticketing unit, including movie and event ticketing, to the food delivery platform Zomato for ₹2,048 crores.

Zomato Transition and Future Availability:

During a transition period of up to 12 months, the entertainment ticketing services, which cover movies, sports, and events, will remain available on the Paytm app. The company confirmed this arrangement, ensuring customers can access these services through Paytm until the transition is complete.

The sale is part of Paytm’s strategic decision to refocus on its core operations in payments and financial services distribution. The entertainment ticketing business generated revenue of ₹297 crore and Adjusted EBITDA of ₹29 crore in FY24. The deal is expected to bolster Paytm’s balance sheet with substantial profits.

Paytm’s Journey in Entertainment Ticketing:

Paytm developed its movie ticketing business from the ground up and expanded by acquiring Insider and TicketNew for ₹268 crore between 2017 and 2018. These acquisitions allowed Paytm to become a significant entertainment ticket market player, competing directly with BookMyShow. However, Paytm is now exiting this business to focus on its core areas of payments and financial services.

Zomato Strategic Acquisition:

For Zomato, this acquisition aligns with its broader strategy to grow its non-core businesses, which include restaurant table booking services and an events organizing and ticketing unit. While these segments represented only 2% of Zomato’s total revenue last year, they were among its fastest-growing areas.

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