Indian food delivery giant Zomato has acquired the entertainment ticketing business of financial services firm Paytm for $244.1 million, signaling a strategic move to strengthen its “going out” offering.
The acquisition, announced on Wednesday evening, includes Paytm’s movie, sports and event ticketing services. As part of the deal, Paytm’s flagship app will continue to host these services for up to 12 months, Paytm said in a stock exchange filing.
The acquisition coincides with a notable performance in Zomato’s stock market valuation, which has surged more than 100% this year as the food delivery giant’s quick commerce offering has made deeper inroads in India. Brokerage firm UBS this week valued Zomato’s quick commerce business Blinkit at $15.4 billion, more than the Noida-based company’s core food delivery business.
Bank of America analysts said the acquisition is consistent with Zomato’s broader strategy of diversifying its services. They wrote in a note that the move could significantly enhance Zomato’s ambition to become a one-stop destination for dining and entertainment options.
Meanwhile, Paytm is refocusing on its core fintech operations amid increased regulatory oversight. The company’s ticketing business, built through the acquisitions of Insider.in and TicketNew, contributed 9% to Paytm’s overall revenue in the recent quarter.
“Paytm’s move to sell its entertainment ticketing business underscores our focus on payments and financial services distribution,” Paytm said in a stock exchange filing.
This is a developing story. More will follow.
