Zomato acquires Paytm's entertainment ticketing business for ₹2,048 crore
What's the story
Zomato has announced the acquisition of Paytm Insider, the entertainment and events ticketing subsidiary of One 97 Communications Limited (OCL), for a deal worth ₹2,048.4 crore. This strategic move marks Zomato's entry into the entertainment ticketing sector and is expected to enhance its existing dining and food delivery services. The transaction was detailed in a regulatory filing on Wednesday by Zomato.
Acquisition details
Deal structure and timeline
The acquisition involves a Share Purchase and Subscription Agreement (SPSA) between Zomato, OCL, Wasteland Entertainment Private Limited (WEPL), and Orbgen Technologies Private Limited (OTPL). As part of the deal, OCL will transfer its sports, movie, and events ticketing businesses to OTPL (at 1,264.6 crore) and WEPL (at 783.8 crore) through a slump sale. The entire process is expected to be completed within 90 days of signing the agreement.
Business diversification
Zomato's strategic expansion into entertainment ticketing
Zomato's acquisition of Paytm's entertainment ticketing business is a strategic move to diversify its business portfolio. The company aims to strengthen its "Going-out" business, a key area of growth for the platform. OTPL and WEPL, both acquired by Zomato in this deal, specialize in movie ticket listings and event ticketing, respectively.
Company overview
Paytm Insider's performance and market presence
OTPL has been operational since 2007 and recorded a turnover of ₹13.14 crore as of March 31, 2024. WEPL, which entered the market in 2015, focuses on event ticketing and brought in ₹236.03 crore over the same period. Paytm welcomed Zomato to the entertainment sector with a lighthearted social media post following the announcement of the acquisition.
Twitter Post
Take a look at Paytm's post
Knock, knock @zomato! 👋We've dropped off some 🎬 to go with your 🍕. Hope you're ready for some real fun – showtime is now in your hands! 🫶
— Paytm (@Paytm) August 21, 2024
We will keep making payments awesome for everyone 🤩, and keep expanding our financial services distribution 🫰🚀
Strategic alignment
Zomato's new app and future plans
The acquisition aligns with Zomato's launch of 'District,' an app designed to consolidate its "going-out" offerings. Founder and CEO Deepinder Goyal stated, "We believe that there is an opportunity to further expand our going-out offering, building on top of our dining-out business." This deal signifies a new phase for Zomato as it merges food and entertainment into a single experience.
Post-acquisition changes
Employee transition and future availability of services
Approximately 280 employees from Paytm's entertainment ticketing division will transition to Zomato as part of the deal. For up to a year during the transition period, movie and event tickets will continue to be available on Paytm app as well as TicketNew and Insider platforms. This acquisition positions Zomato in direct competition with other players in the market like BookMyShow.