Paytm Sells Entertainment Ticketing Business To Zomato For Rs 2,048 Crore Cash
Paytm, India’s leading payments and financial services company, has agreed to sell its entertainment ticketing business to food delivery major Zomato for ₹2,048 crore in cash. The sale encompasses movie, sports, and event ticketing services, as Paytm sharpens its focus on its core business of payments and financial services distribution.
The entertainment ticketing business includes well-known platforms such as Insider and TicketNew, which Paytm had acquired between 2017 and 2018 for ₹268 crore. According to Paytm, the sale signifies the value it has built over time, with its entertainment ticketing segment generating ₹297 crore in revenue and an adjusted EBITDA of ₹29 crore in FY24. The transaction, set to close this quarter, involves transferring approximately 280 employees from Paytm’s ticketing unit to Zomato.
Paytm’s spokesperson acknowledged the significant journey the company had undertaken in building this business, saying, “We built the entertainment ticketing business by addressing the market needs of the time.” The spokesperson added that as the business transitions to Zomato, Paytm expressed gratitude to the team members who contributed to its growth, stating, “It has been a privilege to grow this business with an incredible team.”
Paytm highlighted that during a transition period of up to 12 months, movie and event tickets will still be available on the Paytm app, ensuring a smooth experience for customers and partners. Paytm also stressed that this move aligns with its long-term focus on payments and financial services. The company has been expanding into sectors such as insurance, equity broking, and wealth distribution, which it views as having significant potential for growth. “This move allows us to continue focusing on long-term growth in our core areas and value creation for all stakeholders,” Paytm noted.
The sale of its entertainment ticketing business is expected to generate significant profits for Paytm, with the cash proceeds further strengthening the company’s balance sheet. The deal was supported by advisory firms including Deloitte Touche Tohmatsu India LLP and Morgan Stanley, while legal counsel was provided by Luthra & Luthra.
Paytm – Zomato deal: 10 Important Points
- Paytm has sold its entertainment ticketing business to Zomato for ₹2,048 crore in cash.
- The sale includes platforms like Insider and TicketNew, which were acquired by Paytm for ₹268 crore between 2017 and 2018.
- Paytm’s entertainment ticketing business generated ₹297 crore in revenue and ₹29 crore in adjusted EBITDA in FY24.
- Approximately 280 employees from Paytm’s ticketing business will be transferred to Zomato as part of the deal.
- During a transition period of up to 12 months, movie and event tickets will still be available on the Paytm app.
- The sale allows Paytm to focus more on its core business areas of payments and financial services distribution.
- Paytm’s spokesperson acknowledged the success in building the entertainment ticketing business, attributing it to meeting market needs.
- The transaction is expected to close within this quarter, subject to the completion of all closing conditions.
