Zomato will purchase Paytm’s movie and event ticketing businesses for a total of ₹ 2048 crore ($244.2 million) as part of its diversification strategy.
The acquisition strengthens Zomato’s position in India’s massive online ticketing industry for movies and live events, which is currently controlled by Reliance-backed BookMyShow.
Paytm, which has been BookMyShow’s main competitor since 2017, will now cede market share to Zomato by selling its ‘ticketnew’ platform, which sells movie tickets, and its ‘Insider’ platform, which handles tickets to live events.
Paytm acquired Insider and TicketNew for ₹ 268 billion in 2017 and 2018 after developing its own movie ticketing business.
However, after the RBI’s February directive to wind down its banking unit, the company is quitting these sectors to focus on its core payments and financial services operations.
Zomato’s decision is consistent with its aspirations to grow its non-core businesses, which include restaurant table booking services and an event organizing and ticketing operation.
Last year, the two units accounted for 2% of Zomato’s overall sales and were its fastest-growing areas.
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