Zomato is set to acquire movie and ticketing company Paytm

Zomato confirmed that it is in takeover talks Paytma Videos AND ticket business, although no binding decision has been made yet. The potential deal is aimed at strengthening Zomato’s out-of-town business, in line with its focus on key operational areas.

In a recent stock exchange filing, Zomato said the discussions “are aimed at further strengthening our going-out business and are in line with our position that we are currently solely focused on four key business areas.” The financial terms of the proposed acquisition have not been disclosed, but market reports suggest that the Paytm unit could be valued at around Rs 1,500 crore.

“We acknowledge that we are in discussions with Paytm regarding the above-mentioned transaction, however, no binding decision has been taken at this stage which would require Board approval and subsequent disclosure under applicable law,” Zomato clarified in its filing.

This acquisition, if completed, will be Zomato’s second-biggest acquisition after its 2021 purchase of Blinkit, a fast trading platform acquired in an all-stock deal worth Rs 4,447 crore. Zomato has since invested an additional Rs 300 crore in Blinkit, expecting it to soon eclipse its core food delivery business in terms of growth potential.

As negotiations continue, Zomato continues to focus on strategic acquisitions and investments that support its growth objectives and strengthen its market position.