Paytm Sells Entertainment Ticketing Biz to Zomato for INR 2048 Cr

Paytm, the troubled fintech powerhouse, has reached a definitive agreement to sell its entertainment ticketing business to foodtech behemoth Zomato for INR 2,048 crore in cash.

“This deal, valued at INR 2,048 Cr on a cash-free, debt-free basis, stands as a testament to the value Paytm has created through its entertainment ticketing business, bringing choice and convenience to millions of Indians with its services and scale,” the payments company said in a statement.

The fintech behemoth aims to complete the transaction within the current quarter (Q2 FY25), subject to “satisfactory completion of all closing conditions”.

Meanwhile, Zomato announced in a separate filing that its board authorized the acquisition of Paytm’s movie and event ticketing businesses during a meeting on Wednesday (August 21).

The foodtech company stated that the acquisition is part of a bigger goal to expand its “going-out business”. It is worth noting that Zomato intends to establish a separate app called ‘District’ to expand its going-out business.

Zomato, too, has established a 90-day deadline for the deal’s implementation.

Related: Paytm Reports A Soaring Loss of INR 840.1 Cr, up 134% YoY

Paytm will transfer its movie ticketing business to its subsidiary Orbgen Technologies Pvt Ltd (OTPL), as well as its sports and events ticketing business to another wholly-owned subsidiary Wasteland Entertainment Private Ltd (WEPL).

Zomato will then acquire a 100% share in the two subsidiaries (OTPL and WEPL) and take over ownership of both organizations. As part of the deal, almost 280 staff from Paytm’s entertainment ticketing division will join Zomato.

According to the terms of the sale announced by Zomato, Paytm’s movie ticketing company was valued at INR 1,264.6 crore, while its event ticketing arm was valued at INR 783.8 crore.

According to a statement, the move will allow Paytm to focus on its core payments and financial services distribution business. The financial major also stated that increasing its core offerings would eventually replace earnings from its entertainment tickets division.

“We established the entertainment ticketing industry by responding to market needs at the time. Today, as it passes to Zomato ownership, we thank every team member who helped establish this firm. It has been an honor to create this company with such an excellent staff. This move enables us to continue focused on long-term growth in our core areas and creating value for all stakeholders,” stated a Paytm spokeswoman.

Meanwhile, the company confirmed that tickets will be available on the Paytm app throughout the transition period.

A few of months ago, reports arose that Paytm was in talks with Zomato to sell its movie tickets and events business for INR 1,500 crore. Paytm stated at the time, without confirming the conversations with Zomato, that it was considering a possible transfer of the business.

The deal comes at a time when Paytm has been incurring significant losses since the Reserve Bank of India (RBI) prohibited its payments bank arm from onboarding new customers or accepting new deposits or credit transactions.