On 21 August, Zomato and Paytm’s board had officially declared the exchanges, i.e., Zomato will acquire Paytm’s entertainment ticketing business for Rs. 2,048 crores. Paytm Insider is now merging with Zomato, however the ticketing services will be available on Paytm’s app for 12 months to ensure smooth transition.
Zomato, the food delivery giant is looking to dominate the ticketing business and expand its presence in the so called ‘going-out’ segment. This broadens the area of lifestyle services offered by Zomato encompassing dining out, movies, sports ticketing, live performances, shopping, staycations, and more. All these features are offered on a single platform.
“Zomato’s bold move into the ticketing business is set to redefine the ‘going-out’ experience, creating a one-stop platform for all lifestyle services.” – “Aditya Chaudhary”
Zomato further plans to launch a new application called District which would serve as a platform for ‘going-out’ services. This would be the third largest platform under Zomato after food delivery and quick commerce (Blinkit).
In the agreement, OCL will first transfer the whole business to its wholly owned subsidiaries, i.e., Orbgen Technologies, which handles TicketNew and Wasteland Entertainment, which handles Insider platform. And then these stocks will be transferred to Zomato.
The employees from Paytm will be transferred to Zomato. Around 280 employees will be joining and working under their new company.
Paytm had built movie ticketing from the ground up and had initially acquired TicketNew and Insider for Rs 268 crore between years 2017 to 2018, along with additional investments to support and scale up the business.
Zomato after diversifying its sector is now looking to be a major player in the ticketing business. Zomato is not new to ticketing, in FY24, their dining-out and event ticketing did Rs. 3,225 crores of gross order value with 136% YoY. Zomato also hosts popular events such as Zomaland, a yearly music and food fest. They have also invited US musician Post Malone for the India tour ’22.
Paytm’s total revenue in combined entertainment ticketing business was Rs. 297 crores and Rs. 29 crores in adjusted EBITDA in FY24.
Paytm added that they want to focus on their core financial services offerings. Due to their past situations, they are trying to remain a responsible and trusted company while providing payment services.
Paytm is trying to maintain its market presence once it has committed to improving its working focus. We may hope that this major transaction will lead them to good.
While Zomato is now aggressively targeting the ticketing sector, Mumbai-based BookMyShow leads the market. Nevertheless, we may see a hike in Zomato’s share prices. Please stay tuned for more news.
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