Zomato in a bid to further strengthen it’s going-out segment has agreed to buy Paytm’s movie and event ticketing business.
- Deal is an all cash deal for Rs 2,048 cr
- Paytm has said that it had built it’s movie ticketing business from the ground up and acquired Insider and TicketNew for Rs 268 crore between 2017 and 2018.
- To Paytm, this business contributed Rs 297 cr in revenues and Rs 29 cr in Adjusted EBITDA during FY24
- GOV (Gross Order Value) for the year was over Rs 2,000 crore and grew 29% YoY
- 78 million tickets were purchased by more than 10 million unique customers
- As part of the deal, while Paytm will retain the ticketing and entertainment options on it’s app for the next 12 months, users will be redirected and asked to switch to Zomato’s upcoming app for the going- out segment ‘District’.
Given the recent struggles in it’s core business, Paytm has been looking to divest out of the non-core businesses and hence this sale.
Deal based on numbers seems to be richly valued. However, the current scale is small and potential is huge.
Besides, Zomato with it’s recent turnaround in fortunes has hunger to spread and money to support.
“This is not really an absolutely new business for us as we have already been doing ticketing as a business for more than a year now and have been eyeing building more use-cases for that business. Just to recap, our going-out business (which includes dining-out and event ticketing) did Rs 3,225 crore of GOV (gross order value) in FY24 growing at 136 percent YoY,” Zomato CEO Deepinder Goyal said.