Online food delivery platform Zomato said on Sunday that it is in talks with Paytm to acquire the financial technology company's movies and events business. In a regulatory filing, Zomato said that while it is in discussions with Paytm, no binding decision has been taken yet.
"We acknowledge that we are in discussions with Paytm for the aforementioned transaction; however, no binding decision has been taken at this stage that would warrant board approval and subsequent disclosure in accordance with applicable law," Zomato said. With the talks about the deal, it is reportedly said that fintech platform Paytm’s Vijay Shekhar Sharma wants to focus on the core payments and financial services business.
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The company's filing was clarifying reports that it was in talks to acquire Paytm's movie and ticketing business. "The above discussion is being undertaken with an intent to further strengthen our going-out business and is in line with our stated position of focusing only on our four key businesses currently," it said.
With a successful sale, Paytm would be able to focus on its key areas, which include travel, promotions, and cashback. Further, if the sale is successful, this would be one of the largest buyouts for Zomato. Some of the other large-scale buyouts by Zomato include UberEats and the quick commerce platform Blinkit.
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In 2020, UberEats was acquired by Zomato in a non-cash deal for Rs 1,376 crore. Similarly, in an all-stock deal, Blinkit was acquired by Zomato for Rs 4,447 crore. Apart from running a food festival called Zomaland, Zomato also offers ticket booking services. Speaking about the potential deal, an executive speaking to the Economic Times said, “Zomato’s strategy is to take as much control of the customer’s discretionary spending wallet as possible.”
(With inputs from PTI)
