Paytm sells movie ticketing business to Zomato for $244 million

Zomato, the Indian food delivery giant, has acquired Paytm’s entertainment ticketing business for $244.1 million, marking one of the largest M&A deals among India’s new-age tech companies. The acquisition includes Paytm’s movie, sports, and event ticketing services, with Paytm continuing to host these services on its app for up to 12 months. Around 280 employees from Paytm’s ticketing division will also transition to Zomato.

The move is part of Zomato’s strategy to expand its “going out” offerings. Currently, the online ticketing market operates as a duopoly, with Reliance-backed BookMyShow controlling a majority share — approximately 75% of movie ticketing and over 50% of event ticketing. Paytm holds the remaining market share, according to Jefferies.

This acquisition aligns with Zomato’s recent growth trajectory, as its stock has surged over 100% this year. The food delivery giant’s quick commerce service, Blinkit, has made significant strides, with brokerage UBS valuing it at $15.4 billion — surpassing Zomato’s core food delivery business. Zomato’s current market cap stands at $27.3 billion, with $1.5 billion in cash reserves.

Zomato CEO Deepinder Goyal emphasized the strategic nature of the deal, stating it adds scale and new use-cases for customers. Zomato also plans to spin off the ticketing business into a standalone app called District, which aims to consolidate dining, movies, and events into a single destination.

Meanwhile, Paytm is sharpening its focus on its core fintech operations amid regulatory scrutiny. Paytm’s ticketing division, built through the acquisitions of Insider.in and TicketNew for $32 million, contributed 9% of Paytm’s recent quarterly revenues and 4% to FY24 net revenues. Paytm’s decision to sell underscores its intent to prioritize payments and financial services.