Aug 21, 2024 10:19 PM IST
The entertainment ticketing business will continue to be available on the Paytm app during a transition period of up to 12 months.
One 97 Communications Limited, the parent company of the Paytm brand, announced on Wednesday that it will sell its entertainment ticketing unit, which includes movie and event ticketing, to the food delivery platform Zomato for ₹2,048 crore.
During a transition period of up to 12 months, the entertainment ticketing services, covering movies, sports, and events, will continue to be available on the Paytm app.
“One 97 Communications Limited (OCL)…today announced, that it has entered into definitive agreements for the sale of its entertainment ticketing business that includes movies, sports and events (live performances) ticketing to Zomato Limited,” the company stated.
Here is what the company said about the deal
– Refocuses on “Core Payments and Financial Services Distribution” – The entertainment ticketing business achieved a combined revenue of ₹297 crore and an Adjusted EBITDA of ₹29 crore in FY24.
– Developed the movie ticketing business from the ground up and acquired Insider and TicketNew for ₹268 crore between 2017 and 2018, showcasing Paytm’s ability to build successful ventures and deliver value to shareholders.
– The entertainment ticketing business, which includes movies, sports, and events, will continue to be available on the Paytm app during a transition period of up to 12 months.
– The transaction generates substantial profits for Paytm, with cash proceeds further bolstering the company’s balance sheet.
Built in 2017
Paytm, which has been BookMyShow‘s main competitor since 2017, is set to transfer its market share to Zomato by selling its ‘TicketNew’ platform, which handles movie ticket sales, along with its ‘Insider’ platform, responsible for tickets to live events.
Paytm originally developed its movie ticketing business in-house and later acquired Insider and TicketNew for ₹268 crore between 2017 and 2018.
Now, the company is exiting these businesses to concentrate on its core operations in payments and financial services. This move follows a February directive from the Reserve Bank of India to shut down its banking unit.
For Zomato, the acquisition aligns with its strategy to grow its non-core businesses, which include restaurant table booking services and an events organizing and ticketing unit. These two units, which represented 2% of Zomato’s total revenue last year, were also among its fastest-growing segments.
