Paytm considering selling movie tickets business to Zomato

18 Jun 2024 , 11:12 AM

Paytm is in talks with Zomato Ltd. to sell its movie and event ticketing business, according to people familiar with the situation, as the troubled fintech startup tries to formulate a revival strategy in the face of declining revenues.

Paytm, officially known as One97 Communications Ltd., and online meal delivery startup Zomato are in advanced talks, although there are other buyers for the business, according to the reports. The sources stated that talks are still underway and that no final decision has been taken.

Paytm, led by billionaire founder-CEO Vijay Shekhar Sharma, recorded its first sales decline on record last month and promised to reduce non-core assets. It also warned of job cutbacks, reflecting the consequences of regulatory action against Paytm Payments Bank Ltd., which has reduced much of the fintech’s revenue and prompted it to form new relationships with lenders.

Paytm does not provide separate numbers for its movie and event ticketing businesses. Its marketing services sector, which includes movie and event tickets, credit card marketing, and gift certificates, generated yearly revenues of 17.4 billion rupees ($208 million) in the fiscal year ending March 2024.

If the sale is successful, Paytm will be able to focus more on travel, promotions, and cash backs, all of which are vital for expanding its merchant base and increasing its own revenues.

The acquisition could allow Zomato to expand its digital business into a new, high-growth market. In 2020, it bought Uber Technologies Inc.’s India food unit.

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