Zomato has announced the acquisition of Paytm Insider, the entertainment and events ticketing subsidiary of One 97 Communications Limited (OCL), in a deal valued at ₹2,048.4 crore. This strategic move marks Zomato’s entry into the entertainment ticketing sector, broadening its service offerings beyond dining and food delivery.
Acquisition Details: The deal involves a Share Purchase and Subscription Agreement (SPSA) between Zomato, OCL, Wasteland Entertainment Private Limited (WEPL), and Orbgen Technologies Private Limited (OTPL). OCL will transfer its sports, movie, and event ticketing businesses to OTPL (₹1,264.6 crore) and WEPL (₹783.8 crore) through a slump sale. The transaction is expected to be completed within 90 days of signing the agreement.
Strategic Expansion: Zomato’s acquisition of Paytm’s entertainment ticketing business is a strategic move to diversify its business portfolio. By acquiring OTPL and WEPL, which specialize in movie and event ticketing respectively, Zomato aims to strengthen its “Going-out” business—a key growth area for the platform.
Paytm Insider’s Market Presence: Operational since 2007, OTPL recorded a turnover of ₹13.14 crore as of March 31, 2024. WEPL, which entered the market in 2015, focuses on event ticketing and generated ₹236.03 crore during the same period. Following the acquisition, Paytm welcomed Zomato to the entertainment sector with a lighthearted social media post.
Future Plans: The acquisition aligns with the launch of Zomato’s new app, ‘District,’ designed to consolidate its “going-out” offerings. Founder and CEO Deepinder Goyal stated, “We believe that there is an opportunity to further expand our going-out offering, building on top of our dining-out business.” This deal signifies a new phase for Zomato, merging food and entertainment into a seamless experience.
Post-Acquisition Changes: Approximately 280 employees from Paytm’s entertainment ticketing division will transition to Zomato as part of the deal. For up to a year during the transition period, movie and event tickets will remain available on the Paytm app as well as TicketNew and Insider platforms. This acquisition places Zomato in direct competition with other market players like BookMyShow.
