Zomato continues to move beyond its core offering of food deliveries – now, it intends to double down on making a mark in the “going-out” sector with the acquisition of Paytm’s movie and events ticketing businesses for ₹2,048 crore.
The acquisition, which was disclosed in a filing to the stock exchanges on August 21, represents a cash-free, debt-free transaction valued at ₹2,048 crore. “Paytm agrees to sell Entertainment Ticketing Business to Zomato for Rs 2,048 cr; strengthens focus on core payments and financial services distribution,” Paytm parent One 97 Communications Limited commented on the matter. “We built the entertainment ticketing business by addressing the market needs of the time. Today, as it transitions to Zomato ownership, we thank every team member who contributed to building this business. It has been a privilege to grow this business with an incredible team. This move allows us to continue focusing on long-term growth in our core areas and value creation for all stakeholders,” a spokesperson for Paytm said.
With this, Zomato will acquire Paytm’s entertainment ticketing operations, which include movie, sports, and events ticketing services, from Paytm’s wholly-owned subsidiaries, Orbgen Technologies Pvt. Ltd. and Wasteland Entertainment Pvt. Ltd. These subsidiaries currently manage the TicketNew and Insider platforms, both of which have become prominent names in India’s ticketing landscape. It seems that by integrating ticketing services with its food delivery and dining platforms, Zomato is positioning itself to become a one-stop shop for consumers looking to enjoy a night out. This move could potentially challenge BookMyShow’s dominance in the ticketing market.
As part of the agreement, Paytm will transfer its entertainment ticketing businesses to OTPL and WEPL through a slump sale before selling 100% of its stake in both companies to Zomato. This transaction also includes the transfer of approximately 280 employees who have been involved in Paytm’s ticketing operations, signaling a significant workforce integration between the two companies. During a transition period of up to 12 months, Paytm will continue to offer ticketing services on its app, while gradually redirecting users to Zomato’s new app, District, which will house its growing entertainment and lifestyle offerings.
Zomato’s foray into the entertainment ticketing space is not entirely new. The company has been involved in the sector for over a year, primarily through its “going-out” segment, which includes dining out and event ticketing. In FY24, this business line generated ₹3,225 crore in gross order value (GOV), representing a year-on-year growth of 136%. However, this segment has often been overshadowed by the company’s more prominent food delivery and quick commerce operations.
By acquiring Paytm’s ticketing businesses, Zomato aims to further diversify its portfolio and offer an experience that brings food, events, and entertainment into one platform. The upcoming launch of its new District app is also expected to help consolidate Zomato’s “going-out” services into a single, user-friendly platform.
On the other hand, Paytm’s entry into the entertainment ticketing sector began in earnest between 2017 and 2018 when the company acquired TicketNew and Insider for a combined total of ₹268 crore. These acquisitions marked Paytm’s attempt to challenge market leader BookMyShow by offering a convenient, digital platform for purchasing movie and event tickets. Over the years, Paytm’s ticketing businesses grew steadily, reporting a combined gross merchandise value (GOV) of ₹2,000 crore in FY24, a 29% increase year-over-year. The platforms enabled the sale of 78 million tickets to over 10 million unique customers, demonstrating significant consumer demand for these services. In FY24, Paytm’s entertainment ticketing operations generated ₹297 crore in revenue, with an adjusted EBITDA of ₹29 crore.
