The movie ticketing and events business of Paytm is reportedly being considered for acquisition by the food delivery giant Zomato. In response to these reports, Paytm clarified that discussions are indeed ongoing for a ₹1,500-crore acquisition between Zomato and One97 Communications Ltd, the parent company of Paytm. These negotiations are said to be progressing well, indicating a potential strategic move for both companies.
Zomato commented on their discussions with Paytm regarding the acquisition of their movie ticketing business by stating, “We acknowledge that we are in discussions with Paytm for the transaction, but at this stage, no official decision has been taken that would warrant a Board approval and subsequent disclosure in accordance with applicable law.” According to Deepinder Goyal’s company, this move aligns with Zomato’s objective of expanding its ‘going-out’ products, further diversifying their business operations.
Paytm’s movie ticketing business is particularly appealing to Zomato as it aims to strengthen its presence in the ‘going-out’ segment, a market that encompasses activities such as dining out, entertainment, and social gatherings. The organization further stated, “The ongoing discussions are aimed at bolstering our going-out business, aligning perfectly with our strategic focus on our four core business areas.” This strategic focus indicates Zomato’s commitment to enhancing its offerings and capturing a larger share of the consumer market in this segment.
If the merger is successful, it would become Zomato’s second-largest acquisition, following its all-stock deal in 2021 to acquire Blinkit, a rapid commerce platform, for ₹4,447 crore. This significant investment underscores Zomato’s aggressive growth strategy and its pursuit of consolidating its market position through strategic acquisitions.
For Paytm, this deal is of considerable interest as it faces regulatory actions that have compelled it to form new partnerships with other lenders. According to Bloomberg, these regulatory pressures have significantly influenced Paytm’s strategic decisions, pushing it to seek new avenues for growth and collaboration.
Regarding the valuation of Paytm’s movie ticketing business, Paytm does not disclose sales figures for its movie and event ticketing operations separately. However, it reported that its marketing services division, which includes these businesses, generated 17.4 billion rupees in sales for the fiscal year ending in March 2024. This figure also encompasses sales from gift cards and credit card marketing, highlighting the overall financial health and potential of Paytm’s diversified business operations.