Zomato in talks to acquire Paytm ticketing business: report

What’s the story

Zomato, a leading food delivery company, is reportedly in advanced negotiations to acquire cinema ticketing and events company Paytm.

The potential deal is part of Zomato’s strategic plan to enhance its outbound offering and could value the Paytm vertical at around ₹ 1,500 crore, according to Economic Times.

If the acquisition is successful, it will be Zomato’s second-largest acquisition after its acquisition of Blinkit (formerly Grofers) in 2021.

Zomato’s acquisition strategy is in line with its broader objectives

The potential acquisition is part of Zomato’s broader goal of meeting consumer demand across sectors including food, grocery and entertainment.

“Paytm Movies and Paytm Insider are being merged to create synergy between both the teams and the aim is to build a unified entity,” the source said Economic Times.

“Zomato’s long-standing interest in this segment makes this acquisition a natural choice,” the source added.

Zomato’s Previous Acquisitions and Market Presence

Zomato has a history of strategic acquisitions. In 2021, it acquired Blinkit for ₹ 4,447 crore in an all-stock deal.

The potential acquisition of Paytm’s ticketing business would further strengthen Zomato’s market presence in the exit sector.

The company’s interest in this segment is evident from the recent launch of Zomato Events, a platform that allows users to search and book events.