Photographer: Dhiraj Singh/Bloomberg
Zomato to acquire the movie and events ticketing businesses of Paytm’s for Rs 2,048 crore, digital payments firm said in an exchange filing on Wednesday.
The company said that it will now focus on strengthening the core payments and financial services distribution.
“Paytm agrees to sell Entertainment Ticketing Business to Zomato for Rs 2,048 cr; strengthens focus on core payments and financial services distribution,” said One 97 Communications Limited (OCL), which owns the Paytm brand.
“This deal, valued at Rs 2,048 crores 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 company further said.
According to the exchange filing, as part of the agreement, OCL will transfer its entertainment ticketing business to Zomato as follows:
– Transfer of OCL’s entertainment ticketing business to it’s 100 per cent subsidiaries, Orbgen Technologies Pvt Limited (OTPL) and Wasteland Entertainment Pvt Ltd (WEPL), and
– Selling 100 per cent stake in its subsidiaries OTPL and WEPL, which operate the TicketNew and Insider platforms, respectively to Zomato. The transfer will also include approximately 280 existing employees from the entertainment ticketing business.
The entertainment ticketing business, including movies, sports, and events, will remain available on the Paytm app during a transition period of up to 12 months, the company stated.
Paytm built movie ticketing and acquired TicketNew and Insider for Rs 268 crores between 2017 and 2018.
“We built the entertainment ticketing business by addressing the market needs of the time. 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,” said Paytm spokesperson.
First Published: Aug 21 2024 | 9:05 PM IST
Omprakash Tiwary is a business writer who delves into the intricacies of the corporate world. With a focus on finance and economic landscape. He offers readers valuable insights into market trends, entrepreneurship, and economic developments.
