Zomato to take over Paytm's entertainment ticketing business for Rs 2,048 crore

One 97 Communications, the parent company of Paytm, has agreed to sell its entertainment ticketing business to Zomato for Rs 2,048 crore in cash. This decision aligns with One 97 Communications' strategy of concentrating on its core payments and financial services operations.

As per the agreement, the entertainment ticketing business will be transferred to its 100% subsidiaries — Orbgen Technologies, which operates TicketNew, and Wasteland Entertainment, the manager of Insider Platform to Zomato.

Subsequently, One 97 Communications will divest its entire stake in these subsidiaries to Zomato for Rs 2,048 crore on a cash-free, debt-free basis. Additionally, approximately 280 current employees from the entertainment ticketing division will transition to Zomato as part of this deal.

The transfer of about 280 existing employees from the entertainment ticketing business to Zomato is also a part of the deal. This transitional process is expected to last up to 12 months. Despite this change, customers can rest assured that movie and event tickets will remain accessible through the Paytm app, as well as on the TicketNew and Insider platforms.

"As part of this agreement, OCL will transfer its entertainment ticketing business to Zomato by 1) Transfer of OCL’s entertainment ticketing business to it’s 100% subsidiaries, Orbgen Technologies Pvt Limited (OTPL) and Wasteland Entertainment Pvt Ltd (WEPL), and 2) Selling 100% stake in its subsidiaries OTPL and WEPL, which operate the TicketNew and Insider platforms, respectively to Zomato. The transfer will also include ~280 existing employees from the entertainment ticketing business," the Paytm said in an exchange filing.

Paytm's entertainment ticketing segment is comprised of movie, sports, and event bookings. This sector has experienced significant growth, with reported revenues of Rs 297 crore and an Adjusted EBITDA of Rs 29 crore in FY24, according to the company's announcement. Paytm entered this industry by establishing a movie ticketing platform and subsequently acquiring Insider and TicketNew for Rs 268 crore from 2017 to 2018. Zomato's shares closed at Rs 259.77 on the NSE, 1.3% lower, while Paytm share price ended at Rs 574.90 apiece, up by 0.18%.