Business Desk 
Jun 17, 2024
In a strategic move to bolster its 'going out' offerings, food delivery giant Zomato confirmed ongoing discussions to acquire Paytm's movie ticketing and events business. The clarification came after reports of advanced negotiations between Zomato and One97 Communications Ltd., Paytm's parent company, surfaced, suggesting a potential deal worth INR 15 billion.
"We acknowledge that we are in discussions with Paytm for the transaction, however, no binding decision has been taken at this stage that would warrant a Board approval and subsequent disclosure in accordance with applicable law," Zomato stated in a communication to the exchanges.
Deepinder Goyal, CEO of Zomato, emphasised that this potential acquisition aligns with the company's vision to expand its 'going out' offerings. "The discussion is being undertaken with an intent to further strengthen our going-out business and is in line with our stated position of focusing only on our four key business," Zomato added.
Also read: All about Paytm
If finalised, this acquisition would be Zomato's second-largest purchase after acquiring quick commerce platform Blinkit in 2021, a deal valued at INR 44.47 billion. The acquisition of Paytm's ticketing business would significantly enhance Zomato's presence in the entertainment sector, complementing its core food delivery and dining-out services.
The rationale behind Paytm's interest in this deal likely stems from recent regulatory measures requiring the company to forge new partnerships with other lenders, according to Bloomberg. Although Paytm does not disclose separate figures for its movie and events ticketing segment, the company reported annual sales of INR 17.4 billion in the fiscal year ending March 2024 for its broader marketing services segment, which includes credit card marketing and gift vouchers.
As the talks continue, the market is closely watching for further developments that could reshape the competitive landscape of India's entertainment and food delivery sectors.
