In a strategic move that could redefine the Indian entertainment landscape, Zomato, the leading food delivery platform, has announced the acquisition of Paytm’s entertainment ticketing business for a substantial ₹2,048 crore. This acquisition marks a significant expansion for Zomato, as it ventures into the realm of event and entertainment ticketing.

The Deal: A Win-Win for Both Companies

The deal, which has been approved by the boards of both Zomato and Paytm’s parent company One 97 Communications Ltd, involves the transfer of Paytm’s entertainment ticketing business, including movie, sports, and event bookings, to Zomato. As part of the transaction, Zomato will acquire Paytm’s subsidiaries, Orbgen Technologies Pvt Limited (OTPL) and Wasteland Entertainment Pvt Ltd (WEPL), which operate the TicketNew and Insider platforms, respectively.

For Zomato, this acquisition presents a strategic opportunity to diversify its business and tap into a new market segment. By combining its existing food delivery services with entertainment ticketing, Zomato aims to create a comprehensive platform that caters to the needs of consumers seeking a complete “going-out” experience.

On the other hand, Paytm’s decision to divest its entertainment ticketing business aligns with its broader strategy of focusing on its core payments and financial services offerings. By streamlining its operations and concentrating on its core competencies, Paytm can enhance its competitive position in the highly competitive payments market.

A New App: Zomato’s ‘District’

To accommodate the newly acquired entertainment ticketing business, Zomato plans to launch a separate app called ‘District’. This dedicated platform will provide users with a seamless experience for booking tickets to movies, sports events, and live performances. Zomato’s CEO, Deepinder Goyal, expressed his enthusiasm for the acquisition and the potential it holds for the company’s growth.

Impact on the Market

The acquisition of Paytm’s entertainment ticketing business by Zomato is expected to have a significant impact on the Indian market. As the combined entity gains scale and market share, it could intensify competition with existing players in the entertainment ticketing space. Additionally, the deal could lead to increased innovation and product offerings as Zomato leverages its expertise in technology and customer experience to enhance the ticketing process.