Paytm, along with its subsidiaries entered into an agreement to sell the entertainment ticketing business to Zomato for Rs 2,048 crore in an all-cash deal
Zomato, the Bangalore-based food delivery major, has finalised the acquisition of Paytm's event ticketing subsidiaries Wasteland Entertainment Private Limited (WEPL) and Orbgen Technologies Private Limited (OTPL), as per the company's exchange filing.
The acquisition of Paytm's event ticketing subsidiaries is part of Zomato's plans to expand its "going-out" business. It would see the company beef up its business beyond food delivery, after its rapid and assertive investment in its quick commerce vertical, Blinkit.
With the sale, Paytm said that it wants to focus on the payments and financial services distribution segment.
Following the announcement of the deal, the shares of Paytm climbed more than 2 per cent during Wednesday's intraday trade to Rs 559.15 apiece on the BSE. Similarly, the stocks of Zomato opened in green at Rs 256.20. It is reported that the company in the past six months has delivered a 60 per cent reward to its shareholders.
Paytm, along with its subsidiaries entered into a definitive agreement to sell its entertainment ticketing business to Zomato for Rs 2,048 crore in an all-cash deal.
OTPL and WEPL operate the TicketNew and Insider platforms, respectively. The acquisition cost of OTPL is estimated to be Rs 1,264.6 crore, while for WEPL, it is Rs 783.8 crore.
During the transition period, the movie and event tickets will continue to be available on the Paytm app, as well as on the TicketNew and Insider platforms to ensure a smooth and uninterrupted experience for user and merchant partners.
Around 280 existing employees from Paytm's entertainment ticketing business will move to Zomato.
Zomato is set to launch its app called District for the going-out business, which reportedly is the company's third big B2C vertical after its food delivery and its quick commerce unit Blinkit.