Paytm, owned by One97 Communications (OCL), has entered into an agreement with Zomato to sell its entertainment ticketing business, including movies, sports, and events (live performances) for a consideration of Rs 2,048 crores, with transaction value subjected to cash and net working capital adjustments at closing.
As per the brand, this deal is cash-free and debt-free, and stands as a testament to the value Paytm has created through its entertainment ticketing business, bringing choice and convenience to millions of Indians with its services and scale.
This acquisition deal also underscores Paytm’s core focus on payments and financial services distribution as the company in recent quarters had also expanded in insurance, equity broking, and wealth distribution, with a significant opportunity to cross-sell these services and grow its market presence as a leading financial services distribution player.
Earlier on, Paytm had acquired a majority stake in OML Entertainment’s ‘Insider.in’ in 2017 followed by the acquisition of ‘TicketNew’ from Chennai-based Orbgen Technologies in 2018 for a total of Rs 268 crores and scaled it to lock in a revenue of Rs 297 crores and adjusted EBITDA of Rs 29 crores in FY24.
With this development in place, Zomato will get OCL’s entertainment ticketing business as the same will be transferred and sold wholly by its subsidiaries- Orbgen Technologies and Wasteland Entertainment which operate TicketNew and Insider platforms, respectively. Additionally, about 280 existing employees from the entertainment ticketing business of OCL will also join Zomato.
That being said, during a transition period of up to 12 months, the movie and event tickets will be available on the Paytm app, ‘TicketNew’, and ‘Insider’, ensuring a smooth and uninterrupted experience for users and merchant partners.
Commenting on the development, a Paytm spokesperson, said, “We built the entertainment ticketing business by addressing the market needs of the time. Today, as it transitions to Zomato ownership, we thank every team member who contributed to building this business. It has been a privilege to grow this business with an incredible team. This move allows us to continue focusing on long-term growth in our core areas and value creation for all stakeholders.”
