Zomato in advanced talks to acquire Paytm's movie ticketing and events business for Rs 1,500 crore: Report
Zomato in advanced talks to acquire Paytm's movie ticketing and events business for Rs 1,500 crore: Report
Food delivery giant Zomato is in advanced discussions to acquire Paytm’s movie ticketing and events business for a potential valuation of Rs 1,500 crore, The Economic Times reported citing sources. This strategic move aligns with Zomato's plan to expand its ‘going out’ offerings, it said.
Business Today could not independently verify the development.
Zomato’s interest in Paytm’s events and movie ticketing business is a strategic fit, complementing its broader aim to capture consumer demand across various categories, including food, grocery, and entertainment, the ET report added.
If finalised, this acquisition would mark Zomato’s second-largest purchase, following its acquisition of quick commerce platform Blinkit (formerly Grofers). Zomato had initially acquired Blinkit, previously known as Grofers, in a 2022 deal valued at Rs 4,447 crore.
Zomato is set to infuse Rs 300 crore into its quick commerce subsidiary, Blinkit, as competition heats up in the quick commerce segment. This latest tranche brings Zomato’s total investment in Blinkit to Rs 2,300 crore, according to filings sourced from Tofler.
Following the announcement of its Q4 FY24 results, Zomato stated that Blinkit plans to expand its store footprint to 1,000 by the end of FY25, up from 526 stores as of March 31, 2024, with 75 stores added in Q4.
Paytm does not disclose standalone numbers for its movie and events ticketing business.
Paytm reported annual sales of Rs 1,740 crore ($208 million) in the fiscal year through March 2024 in its marketing services business, which includes movie and events as well as credit card marketing and gift vouchers, according to Bloomberg.
One 97 Communications Ltd (Paytm), which owns Paytm, reported an increase in consolidated net loss at Rs 549.60 crore in the March quarter from Rs 219.80 crore in the December quarter and Rs 168.90 crore in the same quarter last year.
Revenue from operations fell 3 percent year-on-year (YoY) to Rs 2,267.10 crore against Rs 2,334.50 crore in the same quarter last year. Paytm said its March quarter results were impacted by temporary disruption on account of UPI transition and permanent disruption because of the PPBL embargo. Paytm has impaired the carrying value of the company’s investment in PPBL.
Paytm expects Q1FY2025 revenue of Rs 1,500-Rs 1,600 crore and EBITDA before ESOP of minus Rs 500-600 crore. Paytm said it is confident of seeing meaningful improvement starting from Q2 FY2025, based on restarting certain paused products and achieving steady growth in operating metrics.
Watch Live TV in English
Watch Live TV in Hindi