Zomato to Acquire Paytm's Ticketing Platforms for $244 Million, Expands Beyond Food Delivery
Zomato is buying Paytm's movie and event ticketing platforms for $244 million, marking its expansion into the entertainment sector beyond food delivery
Indian food delivery company Zomato is set to purchase Paytm’s movie and event ticketing platforms for 20.48 billion rupees, or approximately $244.2 million. This acquisition will allow Zomato to enter India’s rapidly growing online ticketing industry for both movies and live events.
What is Zomato Acquiring?
Zomato is buying two key platforms from Paytm:
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TicketNew – A platform specializing in online movie ticket bookings, particularly popular in India’s entertainment industry.
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Insider – A platform that focuses on selling tickets for live events, including concerts, sports, and cultural festivals.
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These platforms have positioned Paytm as one of the top players in India’s ticketing market, competing directly with BookMyShow, which is the leading platform in this space and is backed by Reliance.
With this acquisition, Zomato will take over Paytm’s market share in the online ticketing sector, making it a significant competitor to BookMyShow.
Why is Paytm Selling These Businesses?
Paytm initially entered the ticketing business to diversify its operations and acquired TicketNew and Insider between 2017 and 2018 for around 2.68 billion rupees. However, the company is now shifting its focus back to its core strengths – digital payments and financial services. This decision comes after India’s central bank, the Reserve Bank of India, ordered Paytm to wind down its banking unit earlier this year. As part of this restructuring, Paytm has decided to exit non-core businesses, including movie and event ticketing.
What Does This Mean for Zomato?
Zomato’s acquisition of these businesses fits into its strategy of expanding into new areas beyond food delivery. Over the past few years, Zomato has been diversifying its services to include restaurant table booking and event organizing. This move into online ticketing will further strengthen Zomato’s position in the digital services market.
Though online ticketing currently accounts for just 2% of Zomato's total revenue, it has been one of the company’s fastest-growing areas. With the addition of Paytm’s ticketing businesses, Zomato is poised to accelerate its growth in this segment.
Why is This Acquisition Important?
The deal represents a significant shift in Zomato’s business model as it seeks to diversify its revenue streams and reduce its reliance on food delivery. The online ticketing market in India is vast and continues to grow as more people book movie and event tickets online. By acquiring these platforms, Zomato is positioning itself to tap into this expanding market.
Furthermore, by entering the ticketing market, Zomato is also improving its competitive edge against major players like BookMyShow. With an expanded portfolio, Zomato can now offer a wider range of services to its customers, from food delivery to entertainment, which could attract more users to its platform.
In conclusion, Zomato’s acquisition of Paytm’s movie and event ticketing businesses is a strategic move to diversify its offerings, strengthen its presence in India's digital market, and create new revenue opportunities. As Paytm refocuses on its core services, Zomato is poised to become a significant player in the online ticketing industry, potentially reshaping the competitive landscape in India’s entertainment sector.
Also Read: Indian Fintech Paytm in Talks to Sell Movie Ticketing Business to Zomato
