Its entertainment ticketing business, which includes movie and event ticketing, recorded revenues of Rs 297 crore and adjusted EBITDA of Rs 29 crore for FY24. The business is being sold to Zomato for Rs 2,048 crore as part of Paytm’s plan to focus more on its important core financial services.
The same shall be in the form of a slump sale in order to facilitate the transfer of all operations involving the offering of movie ticketing and sports and events ticketing at Paytm to its subsidiaries, OTPL and WEPL, respectively.
Paytm will still continue to offer ticketing services on its app for the next 12 months, but such a user base shall gradually be made to move to Zomato’s new app, titled ‘District,’ which shall now manage all activities related to ‘going out,’ comprising those related to dining out and hanging out.
Now, Zomato is entering the lifestyle services space with dining, movies, events, shopping, and more. The move is expected to attract more consumer money in the active categories.
Deepinder Goyal, CEO of Zomato, said the company had been working on event ticketing for over a year and that the ‘going-out’ business had seen tremendous growth in FY24. He reiterated this acquisition’s great dependence on the successful integration of a new team of executives from Paytm.
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Paytm built its entertainment ticketing business by selling 78 million tickets in FY24 and has made acquisitions, including Insider and TicketNew. Its gross order value was over ₹ 2,000 crore during the same period, reflecting around 29% year-on-year growth.
Around 280 employees from Paytm are expected to transfer to Zomato. This is the company’s first big acquisition, taking in a team it had not worked with closely in the past, and it points strongly to cultural integration as a key success factor for the transaction.
Experts state that this takeover will allow Zomato to firm up its ticketing and events sections by incorporating loyalty programs and driving its food services. It is concentrated on how users experience entertainment options, moving beyond ticket-buying for experiences.
The acquisition could help Zomato grow its revenue, although, based on initial valuations, it will contribute little to the company’s top line. Still, it can help Zomato better capture a larger piece of consumer spending in the lifestyle sector.
The events and ticketing business in live entertainment in India would see incremental growth through new events, an increase in ticket prices, and acceptance in smaller markets, thus making this move strategic for Zomato and for a long-term big haul.
Read Also: Deepinder Goyal’s Billion-Dollar Dream: Will Zomato Reach $100 Billion by 2030
People May Ask
What is the nature of the acquisition between Zomato and Paytm?
Zomato will acquire Paytm’s ticketing business, which includes movie and event ticketing, for about Rs 2,048 crore. This will strengthen Zomato’s position in the ‘going-out’ segment, while Paytm can focus on its core financial services.
What will happen to Paytm’s ticketing services once the acquisition is completed?
Paytm will continue to sell ticketing services through its app for the next 12 months. Gradually, users will be migrated to Zomato’s new app, District, which will manage all the ‘going-out’ dining and entertainment activities.
How will the acquisition benefit Zomato?
This would further fortify Zomato’s standalone in the lifestyle segment, combining independent ticketing, dining, and other services. It would be a better way for users to discover entertainment options and have more revenue potential for Zomato in the long term.
Why is this acquisition important to Paytm?
With this transaction, Paytm made considerable profits and strengthened its balance sheet. The sale will present Paytm with a chance to scale up its core business verticals, such as payments and financial services, by divesting the entertainment ticketing business.
How many employees will move to Zomato as part of this acquisition?
The acquisition will see around 280 employees from Paytm’s entertainment and ticketing business move to Zomato.
What are Zomato’s future plans for the ‘going-out’ business?
Zomato is set to release an app called ‘District’, which will consolidate its entire going-out business: dining out, movies, events, and much more. The app will also provide more lifestyle services on one single platform.
How does the acquisition impact Zomato’s long-term strategy?
The acquisition aligns with Zomato’s strategy toward capturing a larger share of consumer spending on lifestyle services by leveraging its user discovery and cross-selling strengths to drive long-term revenue growth.
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