Zomato, the food delivery service platform is acquiring Paytm’s movie and events ticketing businesses at a whopping ₹2,048 crore. Zomato is a well-known online platform in India which has been expanding its services from food and grocery delivery services to booking live events and concerts. While the entertainment ticketing business is highly dominated by Reliance-backed BookMyShow, Zomato’s move to expand could threaten its user base. Know more about Paytm and Zomato’s new deal.
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Zomato to take over Paytm’s ticketing business
According to a Business Standard report, Paytm’s parent company, One 97 Communications announced that it will be selling the “Entertainment Ticketing Business to Zomato for ₹2,048 cr.” This acquisition came after Paytm announced to increase in its focus on the payments and the financial technology sector. On the other hand, Zomato was already a major part of the ticketing business for more than a year, as several live events and concerts were being booked via the platform. However, now by acquiring Paytm’s ticketing services, the company can finally expand its services.
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Regarding the announcement, One 97 Communications Limited (OCL) said, “This deal, valued at ₹2,048 crores on a cash-free, debt-free basis, stands as a testament to the value Paytm has created through its entertainment ticketing business, bringing choice and convenience to millions of Indians with its services and scale.” While Paytm is one of the major BookMyShow competitors, now Zomato may emerge as the leading brand for the Entertainment Ticketing Business via the acquisition in the coming years.
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Reuters reported that for the initial 12 months, Paytm will continue to offer its ticket-booking services for movies, sports, and events till the official transition takes place to Zomato’s mobile app. Apart from the business, Zomato will also take around 280 employees from Paytm’s entertainment ticketing business for the effective transition and expansion of the platform.
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Therefore, Paytm may restrict several of its services which may be based on online payments and financial services to strengthen its offerings to the user base.
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