Paytm Sells Entertainment Ticketing Business to Zomato for ₹2,048 Crore

One 97 Communications Limited (OCL), the company behind Paytm, India’s leading payments and financial services platform, has announced the sale of its entertainment ticketing business to Zomato Limited.

This business includes movie, sports, and live event ticketing and has been sold for ₹2,048 crore on a cash-free, debt-free basis. The deal highlights the significant value Paytm has built in the entertainment ticketing space, offering convenient services to millions across India.

As part of the agreement, OCL will transfer its entertainment ticketing business to 2 of its subsidiaries, Orbgen Technologies Pvt Limited (OTPL) and Wasteland Entertainment Pvt Ltd (WEPL). These subsidiaries operate the TicketNew and Insider platforms. OCL will then sell 100% of its stake in OTPL and WEPL to Zomato, transferring around 280 employees from the entertainment ticketing business.

The final transaction value will be adjusted based on cash and net working capital at closing, and the deal will be completed once all agreed conditions are met.

Sharpening Focus on Core Payments and Financial Services

Paytm’s sale of its entertainment ticketing business underscores its strategic focus on its core payment and financial services distribution offerings. Recently, the company has expanded into insurance, equity broking, and wealth distribution, positioning itself to cross-sell these services and strengthen its role as a leader in financial services.

Continued Access to Movie and Event Tickets During Transition

For up to 12 months during the transition period, movie and event tickets will remain available on the Paytm app and the TicketNew and Insider platforms. This ensures a smooth and uninterrupted experience for both users and merchant partners.

Building Value in the Entertainment Ticketing Sector

Paytm played a significant role in India’s entertainment ticketing industry, starting from scratch and acquiring TicketNew and Insider for ₹268 crores between 2017 and 2018. Additional investments helped scale the business to generate revenues of ₹297 crores and an adjusted EBITDA of ₹29 crores in FY24. This sale showcases Paytm’s success in building and creating value in various business segments.

With a focus on long-term value creation, Paytm remains confident in its ability to replace the revenue from its entertainment ticketing business by expanding its core areas of payments and financial services distribution. The company aims to continue growing in these key business areas, ensuring sustained success and shareholder value.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.