Breaking News: Paytm Transforms Entertainment Ticketing by Selling to Zomato for a Whopping Rs 2,048 Crore!
Paytm, a leading payments and financial services distribution company in India, has announced the sale of its entertainment and ticketing business, including movies, sports, and events, to Zomato for Rs 2,048 crore. The agreement, finalized on August 21, involves a cash-free, debt-free transfer.
As per the deal, One 97 Communications Limited (OCL), which owns Paytm, will transfer its entertainment ticketing business to Zomato by moving it to its wholly-owned subsidiaries, Orbgen Technologies Pvt Limited (OTPL) and Wasteland Entertainment Pvt Ltd (WEPL). These subsidiaries operate TicketNew and Insider platforms. Subsequently, Paytm will sell its entire stake in OTPL and WEPL to Zomato. The transaction will also see the transfer of 280 existing employees from Paytm’s entertainment ticketing division.
Paytm stated that this strategic move aligns with its core focus on expanding its payments and financial services distribution. The company has also been diversifying its offerings into sectors such as insurance, equity broking, and wealth distribution. This expansion positions Paytm to grow its market presence as a prominent financial services distribution player.
Despite the sale, movie and event tickets will still be available on the Paytm app, as well as the TicketNew and Insider platforms. Paytm had initially acquired TicketNew and Insider between 2017 and 2018 for a total of Rs 268 crore. Since then, the entertainment ticketing business has generated revenues of Rs 297 crore and an Adjusted EBITDA of Rs 29 crore in FY24.
A Paytm spokesperson expressed gratitude toward the team members who contributed to the growth of the entertainment ticketing business. “Today, as it transitions to Zomato ownership, we thank every team member who contributed to building this business. This move allows us to continue focusing on long-term growth in our core areas and value creation for all stakeholders,” the spokesperson added.
Original Story https://www.indiatodayne.in/business/story/paytm-to-sell-entertainment-ticketing-business-to-zomato-for-rs-2048-crore-1076439-2024-08-21?utm_source=rssfeed
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