Zomato is currently in discussions with Paytm about acquiring their movie and event ticketing business.
This is a strategic move by Zomato to diversify its ‘going-out’ business, which already includes using its Zomaland platform and booking offline experiences like dining in restaurants and live events.
With this potential deal, Paytm claims to refocus on its core businesses of payments and financial services that are designed to help merchants scale their businesses. On the other hand, Zomato sees value in the deal for its expanding ‘going-out’ segment, which has seen significant growth, with revenues increasing by over 100% year-on-year to Rs 93 crore in the March quarter. Paytm is merging its movies and events platform vertical into one team, and a potential transfer to Zomato would align with its strategy.
While no binding agreement has been made till now, a formal announcement of the deal could occur this week. If the deal proceeds, Zomato is expected to integrate Paytm’s movie and events ticketing verticals into its platform. Customers will continue to book movies and events on the Paytm app until the integration is completed post-acquisition.
Both companies have emphasized that these discussions are part of their routine strategic explorations aimed at enhancing shareholder value and refining their business focuses. Further details are anticipated in the coming week as the discussions progress.
