Alibaba-backed Paytm has acquired majority stake in Mumbai-based online ticketing platform, Insider.in. OML Entertainment-owned, Insider.in is one of the leading ticketing platforms for events and properties, which includes the likes of Bacardi NH7 Weekender and TV series The Dewarists.
According to The Ken report, Paytm will be paying Rs 35 crore ($5.38 million) to pick up a majority stake in the company. Some part of this will be primary investment in Insider while rest will be secondary for OML Entertainment. The report mentions that the deal is still in the works and likely to get completed soon.
The investment will give impetus to Paytm’s aim to gain quick marketshare in the fledgling online entertainment ticketing space. In March last year, Paytm had entered movie ticketing space by partnering with PVR Cinemas.
Currently, the movie ticketing market in India is estimated to be worth nearly $2 billion, and has been growing at 10 per cent annually. So far, the online movie ticketing market is only 15 per cent of the overall domestic market.
At present, Paytm movie ticketing enables booking across 3,500 screens in more than 550 cities. The company claimed that 25 million tickets were booked in 2016 through its platform. It also identified movie ticketing as the next $1 billion gross transaction vertical, besides travel.
So far, online movie and event ticketing space in India is dominated by BookMyShow, which claimed to sell about 100 million tickets in 2016 and expects to double the growth in 2017 as it sharpens its focus on regional markets. According to Tofler, a business research platform – as of March 2016, the company recorded a total revenue of around Rs 249 crore with profit of Rs 3.2 crore.
Importantly, earlier this month, Alibaba Pictures, an affiliate of Alibaba Group had acquired a majority stake in online ticketing platform, TicketNew for an undisclosed amount. Alibaba owns majority stake in Paytm.
Paytm intends to disrupt the decade long domination of BookMyShow in online movie and event ticketing. According to The Ken report, the Noida-based company had invested Rs 150 crore in movie ticketing vertical over the past one year.
Unlike hotel and flight booking (where Paytm also has presence), use case for movie and events with wallets are high. For instance, people may not travel more than three-four times in a year, however they go for movie or events twice a month or so. Repeat use case and uncrowded market look like real driver for Paytm to deep dive into online entertainment ticketing.