In a major business move, online food delivery platform Zomato has acquired Paytm's entertainment ticketing business for a whopping Rs 2,048 crore. The deal will strengthen Zomato's "going-out" segment and allow Paytm to focus on its core payments and financial services. As part of the agreement, Paytm's entertainment ticketing business will be transferred to Zomato's subsidiaries, followed by the sale of these subsidiaries to Zomato. This will pave the way for Zomato to launch a new app called 'District', dedicated to entertainment ticketing. The combined business is estimated to have a revenue of Rs 297 crore in FY24.
Zomato Acquires Paytm's Entertainment Ticketing Business in Major Move
Background
Zomato, the leading online food delivery platform in India, and Paytm, the digital payments giant, have announced a significant business move. Zomato has acquired Paytm's entertainment ticketing business for a hefty Rs 2,048 crore.
Acquisition Details
The deal will transfer Paytm's entertainment ticketing business to Zomato's subsidiaries, which will then be sold to Zomato itself. This acquisition will pave the way for Zomato to launch a new app called 'District' exclusively for entertainment ticketing.
Benefits of the Acquisition
For Zomato, the acquisition will boost its "going-out" segment. The company has been expanding its offerings beyond food delivery to include restaurant reservations, events, and other related services. The addition of entertainment ticketing will further strengthen its position as a comprehensive platform for out-of-home experiences.
For Paytm, the deal allows it to concentrate on its core payments and financial services businesses. The company has faced challenges in the entertainment ticketing sector, with competitors such as BookMyShow and TicketNew dominating the market.
Projected Revenue
The combined entertainment ticketing business is expected to generate approximately Rs 297 crore in revenue for FY24. This will provide Zomato with a significant revenue stream beyond food delivery.
FAQs
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