Zomato acquires Paytm’s movie and ticketing biz for $244 Mn

Foodtech and quick commerce platform Zomato is set to acquire Paytm’s movies and ticketing business. The two companies have been executing the transaction for the past three months. This is the first major acquisition for the Gurugram-based firm after Blinkit in June 2022.

Paytm agrees to sell its entertainment ticketing business to Zomato for Rs 2,048 crore cash or $244 million, according to a disclosure made to the Bombay Stock Exchange (BSE).

As a part of the deal, Paytm’s parent One97 Communications will transfer 100% stakes in its two subsidiaries: Orbgen Technologies (TicketNew), and Wasteland Entertainment (Insider) to Zomato.

The deal will also include 280 existing employees from the two subsidiaries: TicketNew and Insider. For context, Paytm acquired TicketNew in 2018 for $40 million while the Vijay Shekhar Sharma-led company took over Insider in May 2017.

The business achieved revenues of Rs 297 crore and an adjusted EBITDA of Rs 29 crore in FY24, as per the disclosure.

The entertainment ticketing business, which includes movie, sports, and live event ticketing, will continue to operate on the Paytm app for up to 12 months during the transition period. The transaction is expected to close within this quarter, subject to the completion of all agreed terms.

The deal typifies the situation the two firms find themselves in today. While Zomato can't seem to put a step wrong, for Paytm, it's been an extended period of struggle. That it has managed to extract the value it has from these businesses is perhaps testimony to its own abilities to hustle and make things work, something many people might have forgotten possibly. Zomato will hope the winning streak continues with the newest acquisitions. Unlike Paytm, they will know that it is the least expected from them after the smash hit they scored with Blinkit.