Paytm in discussion with Zomato to its sell movie ticketing business

Paytm in discussion with Zomato to its sell movie ticketing business

Paytm in discussion with Zomato to its sell movie ticketing business

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Fintech Giant Streamlines Operations Amid Declining Sales

June 18, 2024 — Paytm, formally known as One97 Communications Ltd, is reportedly in advanced discussions with Zomato to sell its movie and events ticketing business. This move comes as Paytm seeks to streamline operations and address declining sales.

According to sources familiar with the matter, the talks between the fintech company and the online food delivery giant are progressing, although other potential buyers are also in consideration. The negotiations are ongoing, and no final decision has been made yet.

Last month, Paytm, led by billionaire founder-CEO Vijay Shekhar Sharma, reported its first-ever sales decline. This downturn has prompted the company to focus on core assets and reduce non-essential business operations. The regulatory actions against Paytm Payments Bank Ltd have significantly impacted its business, necessitating new partnerships with lenders and leading to potential job cuts.

For Zomato, acquiring Paytm’s movie and events ticketing verticals could enhance its digital offerings, particularly in the high-growth area of event ticketing. Zomato has previously expanded its digital business by acquiring Uber Technologies Inc.’s India food unit in 2020. In a recent stock exchange filing, Zomato confirmed the discussions, indicating the intent to strengthen its ‘going-out’ business, which includes in-restaurant dining and live events like Zomaland.

Paytm’s strategy is now focused on its payments and financial services sectors, aiming to support merchants in scaling their businesses. Integrating Paytm’s movie and events ticketing operations with Zomato’s existing platform could provide significant value to the food delivery firm’s expanding ‘going-out’ vertical. This segment has seen substantial growth, with revenues increasing over 100% year-on-year to Rs 93 crore in the March quarter.

Currently, Paytm is merging its movies and Insider (events platform) verticals into a single team, allowing customers to continue booking both movies and events on the Paytm app. However, once the deal is finalized, Zomato is expected to integrate these services within its platform. Sources indicate that a formal announcement of the deal could be made as early as next week.