Paytm to Divest Entertainment Ticketing Business to Zomato for INR 2,048 Crore, Sharpens Focus on Core Financial Services
One 97 Communications Limited (OCL), the parent company of Paytm, has entered into a definitive agreement to sell its entertainment ticketing business to Zomato Limited for a cash consideration of INR 2,048 crore. This strategic move is in line with Paytm’s ongoing effort to focus on its core competencies in payments and financial services distribution, while streamlining its business operations.
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A Strategic Divestment to Strengthen Financials
Paytm’s decision to sell its entertainment ticketing business, which includes movie, sports, and event ticketing, marks a significant milestone in the company’s growth journey. Having built this vertical from the ground up, Paytm successfully expanded the business through strategic acquisitions, including TicketNew and
, for a combined INR 268 crore between 2017 and 2018. This business has since grown to generate INR 297 crore in revenue and INR 29 crore in Adjusted EBITDA for FY24.
The divestment underscores Paytm's commitment to optimizing its balance sheet and refocusing its resources on its core areas. The cash proceeds from the transaction are expected to further bolster Paytm's financial position, providing additional capital for investments in its payments and financial services divisions.
Transaction Details and Future Transition
The sale involves the transfer of Paytm’s entertainment ticketing business to its wholly-owned subsidiaries, Orbgen Technologies Pvt Limited (OTPL) and Wasteland Entertainment Pvt Ltd (WEPL), which manage TicketNew and Insider, respectively. Zomato will acquire 100% of these subsidiaries, including around 280 employees associated with the entertainment ticketing business. The transaction’s final value will be subject to cash and net working capital adjustments at the time of closing.
Paytm will continue to offer movie and event tickets on its platform for up to 12 months during a transition period, ensuring a smooth and uninterrupted experience for users and merchant partners.
Focus on Core Business and Long-Term Value Creation
With this divestiture, Paytm reinforces its strategic focus on expanding its core business areas—payments, insurance, equity broking, and wealth distribution. The company sees significant opportunities to grow its market presence as a leading financial services distribution player in India. The transition of its entertainment ticketing business to Zomato is expected to enable Paytm to allocate more resources towards driving innovation and growth in its core sectors.
A Paytm spokesperson commented, "This move allows us to continue focusing on long-term growth in our core areas and value creation for all stakeholders. We built the entertainment ticketing business by addressing market needs, and now, as it transitions to Zomato, we are confident in our ability to replace this revenue through our expanding core business offerings."
Advisory and Transaction Closing
Deloitte Touche Tohmatsu India LLP served as the transaction advisor and provided valuation services for the deal, while Morgan Stanley offered a fairness opinion. Legal counsel was provided by Luthra & Luthra. The transaction is anticipated to close within this quarter, subject to the fulfillment of all closing conditions.
About Paytm
Paytm, a pioneer in mobile payments in India, has established itself as the country’s leading mobile payments and financial services distribution company. With a mission to bring half a billion Indians into the mainstream economy through technology, Paytm continues to build innovative solutions that empower small businesses and consumers alike.
This strategic divestment not only highlights Paytm’s ability to build and scale businesses but also demonstrates its commitment to delivering long-term value to shareholders by doubling down on its core strengths in financial services.