Paytm is reportedly considering selling its ticketing unit to Zomato

India payment is reportedly in talks to sell its movie and event ticketing business Zomato.

Talks between FinTech and a food delivery company are at an advanced stage, Bloomberg News reported Sunday (June 16), citing sources familiar with the matter.

The proposed deal comes as Paytm looks to turn around its fortunes in the face of declining revenues. Last month, the company reported its first-ever sales decline, AND promised to cut non-core assets and also suggested that layoffs were possible.

As Bloomberg notes, the sale – assuming it happens – will allow Paytm to focus on businesses that will help it expand its commerce base – travel, offers and cashback – while allowing Zomato to expand into a new, fast-growing space.

PYMNTS has reached out to both companies for comment but has not yet received a response.

Earlier this month National Payments Corporation of India announced that the participation of Paytm With The number of unified payment interfaces (UPI) in the country continues to decline, with Paytm accounting for 8.1% of total UPI transactions last month, compared to 13% in January.

Paytm has had 1.1 billion customer-initiated transactions on the network, ranking it third behind powered by Walmart PhonePe (6.8 billion) and Google Pay (5.2 billion), whose market share is constantly growing.

Companies like Paytm, Google AND All PhonePes are competing for consumers’ attention in a country that is in crisis “digital payments journey” for the last 15 years, as PYMNTS wrote late last year.

Research by PYMNTS Intelligence found that digital wallets are now the preferred payment method for over half of retail purchases in India, with 80% of digital wallet users choosing to transact via UPI.

Since then, Paytm has been struggling January, when India’s banking regulator suspended operations at Paytm Payments Bank – which processed most of Paytm’s payments – following an audit that revealed “persistent non-compliance and persistent significant supervisory concerns“

The move by the Reserve Bank of India (RBI) comes after two years of warnings about a questionable relationship between Paytm and its banking arm.

Later reports revealed that the RBI took this decision after an audit showed the flow of money and data between Paytm Payments Bank and its parent company, leading to accounting and supervisory problems.

The regulator also warned potential conflicts of interestwith the same managers making decisions in both Paytm and Paytm Payments Bank.