Fintech giant Paytm is offloading its entertainment ticketing division to Zomato for Rs 2,048 crore. This sale includes movie, sports, and event ticketing services, which will remain on the Paytm app for up to 12 months during the transition.
In a regulatory announcement, Paytm’s parent company, One 97 Communications Limited (OCL), confirmed the sale of its entertainment ticketing business to Zomato. This deal, valued on a cash-free, debt-free basis, reflects the significant value Paytm created in this sector.
The transaction involves transferring OCL’s ticketing business to its wholly-owned subsidiaries, Orbgen Technologies Pvt Ltd and Wasteland Entertainment Pvt Ltd, and selling their 100% stakes to Zomato. It also includes transferring 280 employees currently working in the ticketing division.
Paytm’s spokesperson emphasized that this strategic move allows the company to focus more on its core financial services and long-term growth. Paytm, which developed its movie ticketing business in-house and acquired Insider and TicketNew for Rs 268 crore, reported revenue of Rs 297 crore and Adjusted EBITDA of Rs 729 crore for FY24 in this segment.
The decision to sell aligns with Paytm’s strategy to concentrate on payments, financial services, insurance, equity broking, and wealth management. Founder Vijay Shekhar Sharma mentioned that the company is now focused on a sustainable and profitable business model, following significant challenges and regulatory restrictions on Paytm Payments Bank by the RBI.
Paytm also reported a 35% decrease in operational revenue for the June quarter, with net losses more than doubling compared to the previous year.
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