In a major strategic move, Zomato, India’s leading food delivery platform, has acquired the movie and events ticketing businesses of digital payments giant Paytm for a substantial $244.2 million. This acquisition aims to solidify Zomato’s position in India’s competitive online ticketing market, currently dominated by Reliance-backed BookMyShow.
By acquiring Paytm’s ‘ticketnew’ and ‘Insider’ platforms, Zomato is gaining access to a significant portion of the market share previously held by its competitor. This strategic move is expected to significantly boost Zomato’s non-core business revenue and expand its customer base.
Zomato has been actively operating its ticketing business for over a year, and this acquisition aligns with its broader strategy to diversify its offerings and capitalize on the growing demand for online ticketing services in India.
As part of the agreement, Paytm’s ticketing platforms will continue to operate for a transitional period of 12 months before being fully integrated into Zomato’s newly launched ‘District’ mobile application. Additionally, Zomato will be welcoming approximately 280 employees from Paytm’s entertainment ticketing business into its team.
Paytm’s decision to divest its ticketing businesses comes in the wake of regulatory challenges, including a recent order from India’s central bank to wind down its banking unit. The company is now focusing on its core payments and financial services operations.
The acquisition of Paytm’s ticketing businesses marks a significant milestone for Zomato, as it expands its reach and offerings beyond food delivery. This strategic move positions Zomato as a major player in the online ticketing market and sets the stage for further growth and innovation.
