Zomato to buy Paytm’s entertainment ticketing business for Rs 2,048 crore
Zomato has taken a significant step to broaden its business horizons by acquiring Paytm Insider.
The entertainment and events ticketing arm of One 97 Communications Limited (OCL), for Rs 2048.4 crore. The acquisition, approved by Zomato’s board, will allow the food delivery giant to foray into the entertainment ticketing sector, complementing its existing dining and food delivery services.
In a regulatory filing on Wednesday, Zomato detailed its agreement to enter into a Share Purchase and Subscription Agreement (SPSA) with OCL, Wasteland Entertainment Private Limited (WEPL), and Orbgen Technologies Private Limited (OTPL) to seal the deal.
The complex transaction involves OCL transferring its movie, sports, and events ticketing businesses to its subsidiaries OTPL and WEPL through a slump sale. OCL will then inject capital into these subsidiaries via preferential allotment, using the proceeds to cover the slump sale payment. Simultaneously, Zomato will purchase OCL’s entire stake in both OTPL and WEPL, effectively making them wholly owned Zomato subsidiaries.
The acquisition will be wrapped up within 90 days of signing the SPSA, with OTPL’s acquisition valued at Rs 1,264.6 crore and WEPL’s at Rs 783.8 crore.
By stepping into the entertainment ticketing space, Zomato aims to further diversify its portfolio. The company emphasised that this move aligns with its strategic focus on bolstering its “Going-out” business, a key area of growth for the platform.
OTPL, which has been operational since 2007, specializes in movie ticket listings and recorded Rs 13.14 crore in turnover as of March 31, 2024. WEPL, which entered the market in 2015, focuses on event ticketing and brought in Rs 236.03 crore over the same period.
Paytm, in a lighthearted social media post, welcomed Zomato to the entertainment sector.
This acquisition builds on earlier reports from June when Zomato hinted at its interest in acquiring Paytm’s movies and events businesses. At the time, the company noted that the move would strengthen its “going-out” segment and fall in line with its plan to concentrate on its four core businesses.
Zomato’s expansion into the ticketing market dovetails with the launch of ‘District,’ a new app focused on consolidating its “going-out” offerings. Founder and CEO Deepinder Goyal had remarked, “We believe that there is an opportunity to further expand our going-out offering, building on top of our dining-out business. Additional use cases for customers in the going-out space include – movies, sports ticketing, live performances, shopping, staycations etc.”
This deal marks a bold new chapter for Zomato, as it blends food and entertainment into a unified experience, strengthening its grip on India’s fast-evolving consumer space.