One 97 Communications Limited, the parent company of Paytm, on Wednesday announced that it will sell its entertainment ticketing business to food delivery giant Zomato for Rs 2,048 crore ($244.2 million). The sale includes ticketing services for movies, sports and events. For a transition period of up to 12 months, these services will continue to be available on the Paytm app, the company said.
“One 97 Communications Limited (OCL) today announced that it has entered into definitive agreements for the sale of its entertainment ticketing business, which includes movie, sports and event (live show) tickets, to Zomato Limited,” the company said in a statement. The deal, valued at Rs 2,048 crore, underlines the value Paytm has created through its entertainment ticketing business, providing choice and convenience to millions of Indians with its services and scale, the company said.
Zomato’s strategic entry into the online ticketing market
Meanwhile, the development marks Zomato’s strategic entry into India’s booming online ticketing market, which has been predominantly led by Reliance-backed BookMyShow. Paytm, which has been BookMyShow’s closest competitor since 2017, will now hand over its market share to Zomato by selling its “ticketnew” platform, which sells movie tickets, as well as its “Insider” platform, which handles tickets for live events.
Paytm quits ticketing as Zomato broadens its horizons
Paytm built its movie ticketing business in-house and acquired Insider and TicketNew for Rs 268 crore between 2017 and 2018. However, the company is now exiting these businesses to focus on its core payments and financial services operations, following a February order by the RBI to wind down its banking unit. For Zomato, the move aligns with its efforts to expand its non-core businesses, which include restaurant table booking services and an event management and ticketing unit. Listen to the latest songs , only on JioSaavn.com The two units, which accounted for 2% of Zomato’s total revenue last year, were also its fastest-growing segments.
(With contributions from agencies)
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