Zomato in Talks to Acquire Patym's Vertical Business Worth INR 1,600 Crore Zomato reports talks to acquire Paytm movies and Paytm insider verticals worth INR 1,600 - 1,750 crore.
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Zomato confirmed that the company is in contact with Paytm to acquire their business vertical of movies and other event tickets worth INR 1,600 - 1,750 crore. In a stock exchange filing, the company acknowledged that despite discussions, there is no binding decision taken at this stage that would warrant a board approval and subsequent disclosure in accordance with applicable law.
"The above discussion is being undertaken with an intent to further strengthen our going-out business and is in line with our stated position of focusing only on our four key businesses currently," it added in the stock exchange filing.
On the other hand, in a filing with the Bombay Stock Exchange (BSE), Paytm also confirmed, "The company routinely explores various strategic opportunities aimed at enhancing shareholder value. The potential transfer of Paytm's entertainment business, a component of our marketing services, is one opportunity under consideration."
ET reported that Paytm movies and Paytm insider are being merged to bring in synergies between the two teams. The idea is to build the segment as a single unit. Paytm has emerged as a significant contender in the digital ticketing sector, rivaling BookMyShow. The company has expanded its operations significantly over recent years. In 2017, it acquired a stake in Insider.in for approximately INR 35 crore and further strengthened its market position by purchasing the Chennai-based TicketNew in 2018.
However, despite its substantial inroads into the ticketing market, Paytm is considering divesting these business segments to refocus on its core digital payment services, especially in light of the recent scrutiny from the Reserve Bank of India (RBI).
According to projections by Ficci-EY, the live events industry is poised to grow to INR 14,300 crore by 2026, driven by the popularity of sporting events such as the Indian Premier League (IPL), the cricket World Cup, the India Super League (ISL), and the Kho Kho league, which continue to draw increasing fanbases. Additionally, live music concerts and other events, along with both international and local festival brands like Lollapalooza, NH7 Weekender, and Magnetic Fields, have seen a surge in popularity over the years.
