Zomato to pick up Paytm’s ticketing business for ₹2,048 crore

22 Aug 2024 , 11:09 AM

Zomato will buy Paytm’s entertainment ticketing business for ₹2,048 crore, the online meal delivery platform and fintech startup announced on Wednesday, August 21. The acquisition will help Zomato improve its “going-out” section, while the struggling fintech company will focus on core payments and financial services distribution.

The selling agreement covers the sports, movie, and events (live performances) ticketing company on a cash-free, debt-free basis, and the boards of both Zomato and One 97 Communications Ltd (OCL) have approved it.

According to the terms of the agreement, the entertainment ticketing services will stay available on the Paytm app for up to 12 months, assuring user continuity as Zomato integrates these services into its offers.

Paytm’s entertainment ticketing category, which includes movie, sports, and event tickets, has seen significant growth, with revenues of ₹297 crore and Adjusted EBITDA of ₹29 crore in FY24, according to a press release.

Zomato will spin out the new business as a new app called ‘District’. In a letter to shareholders, Zomato MD and CEO Deepinder Goyal stated that the purchase will allow the platform to “add more scale” and “offer newer use cases” to its users.

At around 10.38 AM, Zomato was trading marginally lower at ₹259.86, against the previous close of ₹260.03 on NSE. The counter touched an intraday high and low of ₹267, and ₹259.01, respectively.

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