Zomato acquires Paytm’s ticketing business, eyes growth in payments and financial services

By Gloria Mathias

Paytm has entered into definitive agreements to sell its entertainment ticketing business, which includes movie, sports and event (live performances) ticketing, to Zomato.

This deal, valued at $244 million (INR 2,048 crore) on a cash-free, debt-free basis, stands as a testament to the value Paytm has created through its entertainment ticketing business. With its services and scale, Paytm brings choice and convenience to millions of Indians.

As part of this agreement, Paytm will transfer its entertainment ticketing business to Zomato by transferring OCL’s entertainment ticketing business to its 100% subsidiaries, Orbgen Technologies Pvt Ltd (OTPL) and Wasteland Entertainment Pvt Ltd (WEPL) and selling its 100% stakes in its subsidiaries, OTPL and WEPL, which operate the TicketNew and Insider platforms, respectively, to Zomato.

The transfer will also include 280 existing employees from the entertainment ticketing business. Sharpening the focus on Core Payments and Financial Services Distribution Paytm’s move to sell its entertainment ticketing business underscores its core focus on payments and financial services distribution. In recent quarters, the company has also expanded its offerings 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.

During a transition period (up to 12 months), the movie and event tickets will continue to be available on the Paytm app, as well as on the TicketNew and Insider platforms, ensuring a smooth and uninterrupted experience for users and merchant partners. The company remains confident in substituting revenue from its entertainment ticketing business by expanding its core business areas of payments and financial service distribution.

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.” Deloitte Touche Tohmatsu India LLP provided transaction advisory and valuation, while Morgan Stanley assisted Paytm with a fair opinion on the transaction. Luthra & Luthra acted as legal counsel to Paytm on the transaction. The transaction is expected to close within this quarter, subject to the satisfactory completion of all closing conditions.