Paytm to sell entertainment ticketing business to Zomato for Rs 2,048 crore

Paytm, India's payments and financial services distribution company has agreed to sell its entertainment and ticketing business including movies, sports and events to Zomato for Rs 2,048 crore.

Paytm, on August 21 announced that it has entered into definitive agreements on a cash-free, debt-free basis.

As part of the agreement made with Zomato, One 97 Communications Limited (OCL), which owns Paytm, will transfer its entertainment ticketing business to Zomato by transfering OCL's entertainment ticketing business to it's 100 per cent subsidiaries, Orbgen Technologies Pvt Limited (OTPL) and Wasteland Entertainment Pvt Ltd (WEPL), and by selling 100 per cent stake in its subsidiaries OTPL and WEPL, which operate the TicketNew and Insider platforms, respectively to Zomato. 

The transfer will also include -280 existing employees from the entertainment ticketing business.

In its statement, Paytm stated that its "move to sell its entertainment ticketing business underscores its core focus on payments and financial services distribution. In recent quarters, the company has also expanded its offerings in insurance, equity broking, and wealth distribution, with significant opportunity to cross-sell these services and grow its market presence as a leading financial services distribution player."

Meanwhile, movie and event tickets will continue to be available on the Paytm app, as well as on the TicketNew and Insider platforms. 

It must be mentioned that Paytm had acquired TicketNew and Insider for total consideration of 268 crores from 2017 to 2018. The company built the entertainment ticketing business to revenues of Rs 297 crores and Adjusted EBITDA of Rs 29 crores in FY24. 

"With a strong focus on long-term value creation, the company remains confident in substituting revenue from its entertainment ticketing business by expanding core business areas of payments and financial service distribution," the statement added. 

Paytm spokesperson said, "We built the entertainment ticketing business by addressing the market needs of the time. Today, as it transitions to Zomato ownership, we thank every team member who contributed to building this business. It has been a privilege to grow this business with an incredible team. This move allows us to continue focusing on long-term growth in our core areas and value creation for all stakeholders."