In a strategic move, One 97 Communications Limited (OCL), the parent company of Paytm, has announced the sale of its entertainment ticketing business to Zomato Limited for ₹2,048 crores. The transaction, which is on a cash-free, debt-free basis, signifies Paytm’s renewed focus on its core payments and financial services operations, while Zomato aims to expand its footprint in the entertainment sector.

Key Points

Transaction Overview: Zomato will acquire a 100% stake in Paytm’s ticketing subsidiaries, Orbgen Technologies Pvt Ltd (OTPL) and Wasteland Entertainment Pvt Ltd (WEPL), which operate the TicketNew and Insider platforms.

Deal Value: The acquisition deal is valued at ₹2,048 crores, with final adjustments based on cash and net working capital at closing.

Employee Transfer: Approximately 280 employees from Paytm’s ticketing business will transition to Zomato.

Strategic Focus: The sale allows Paytm to concentrate on expanding its core financial services, including payments, insurance, equity broking, and wealth management.

Business Transfer: Paytm will transfer its ticketing operations to its subsidiaries, OTPL and WEPL. Zomato will acquire these entities as part of the deal, thereby gaining control over the TicketNew and Insider platforms.

Employee Integration: Zomato will integrate around 280 employees from the ticketing business into its operations, ensuring a smooth transition and continuity of service.

Operational Adjustments: The final transaction value will be adjusted based on the cash and net working capital available at the time of closing the deal.

Deal Structure: The ₹2,048 crore deal is structured on a cash-free, debt-free basis, with adjustments for cash and net working capital at the time of closing.

Ticketing Access: During a transition period of up to 12 months, customers will still be able to access ticketing services for movies and events through the Paytm app, as well as the TicketNew and Insider platforms.

Conclusion

This acquisition marks a significant milestone for both Paytm and Zomato. For Paytm, the sale of its entertainment ticketing business aligns with its strategy to streamline operations and focus on its core areas of financial services. Meanwhile, Zomato’s acquisition of TicketNew and Insider platforms bolsters its position in the entertainment sector, complementing its existing “going-out” segment, which includes dining and event ticketing. With plans to launch a new app called “District,” Zomato is poised to further integrate and enhance its entertainment offerings, projecting substantial growth in this sector in the coming years.