Paytm sells its ticketing business to Zomato for ₹2,048 crore
Movie and event tickets will be available on the Paytm app, as well as on the TicketNew and Insider platforms, during 12-month transition period.
In a significant milestone, fintech powerhouse One 97 Communications Limited (OCL), which controls Paytm has now moved a notch up, so now, Paytm sells its ticketing business to Zomato. The brand has signed definitive agreements to sell its entertainment ticketing business, which includes movies, sports and events (live performances), to food delivery juggernaut Zomato.
According to the terms of the agreement, Paytm sells its ticketing business to Zomato by transferring OCL’s entertainment ticketing business to its 100% subsidiaries, Orbgen Technologies Pvt Limited (OTPL) and Wasteland Entertainment Pvt Ltd (WEPL), and selling Zomato a 100% stake in its subsidiaries OTPL and WEPL, which operate the TicketNew and Insider platforms.
The regulatory filing states that around 280 current workers of the entertainment ticketing company would also be transferred.
The brand stated that even when Paytm sells its ticketing business to Zomato, the movie and event tickets will be available on the Paytm app, as well as on the TicketNew and Insider platforms, during the up to 12-month transition period, guaranteeing a seamless and uninterrupted experience for customers and merchant partners.
After starting from scratch and acquiring TicketNew and Insider for a total of Rs 268 crores between 2017 and 2018, Paytm became an influential player in India’s entertainment ticketing market. In an effort to grow the company, Paytm has also made further investments. But while Paytm sells its ticketing business, it is a significant gain for Zomato.
Paytm’s entertainment ticketing division brought in Rs 297 crore in sales and Rs 29 crore in adjusted EBITDA in FY24.
Why Paytm Sells its Ticketing Business: The Strategic Shift and Focus
Paytm has sold its ticketing business in order to concentrate more on its core payment and financial services distribution businesses. The company stated in its regulatory filing that Paytm’s decision to sell its entertainment ticketing division highlights its primary emphasis on payments and the distribution of financial services.
The company has added insurance, equities broking, and wealth distribution to its list of services in recent quarters. It stated that these new offers present a big chance for cross-selling and for the company to establish itself as a major player in the financial services distribution industry.
“We built the entertainment ticketing business by addressing the market needs of the time,” a Paytm official stated. “Today, as it transitions to Zomato ownership, we thank every team member who contributed to building this business. It has been a privilege to grow this business with an incredible team. This move allows us to continue focusing on long-term growth in our core areas and value creation for all stakeholders.”
Morgan Stanley helped Paytm with a fairness assessment on the transaction, while Deloitte Touche Tohmatsu India LLP offered transaction advising and valuation for the massive sale. Paytm received legal advice regarding the transaction from Luthra & Luthra. According to the statement, the acquisition is anticipated to finalise this quarter, assuming all closing requirements are fulfilled.
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