Zomato, a major player in the foodtech industry, has confirmed ongoing discussions with Paytm to acquire its movies and ticketing business. This news comes from the latest stock exchange filings by both companies. Reports indicate that Zomato is considering an acquisition deal valued between Rs 1,600-1,750 crore ($190-210 million).

In its filing, Zomato stated, “We acknowledge that we are in discussions with Paytm for the aforementioned transaction, however, no binding decision has been taken at this stage that would warrant a Board approval and subsequent disclosure in accordance with applicable law.” This potential acquisition aligns with Zomato’s strategy to strengthen its “going-out” business, focusing on its four key operational areas.

Paytm, confirming the talks, mentioned, “As noted in our earnings call, our focus will be on payment and financial services along with digital goods commerce, which are designed to help our merchants scale their businesses.” Both companies emphasized that the discussions are preliminary and not yet bound by any agreements, urging that current information should be viewed as speculative.

The talks come amidst significant layoffs at Paytm and its first revenue decline in Q4 due to restrictions by the Reserve Bank of India over regulatory compliance concerns. Despite these challenges, Paytm anticipates a recovery starting in Q2, with stabilization and growth in consumer and merchant metrics from April/May.

If the acquisition is finalized, Zomato could significantly enhance its presence in the events business, positioning itself as a competitor to BookMyShow. Zomato recently announced a Rs 100 crore ($12 million) investment in Zomato Entertainment, its subsidiary managing live events and ticketing