Zomato is set to acquire Paytm's entertainment and ticketing business for Rs 2,048 crore as it aims to expand into the 'going-out' segment, while Paytm focuses on strengthening its core financial services. The cash deal, approved by both companies' boards on August 21, will transfer Paytm's ticketing assets to Zomato.
Paytm will retain ticketing services on its app for 12 months before redirecting users to Zomato’s new app, 'District.' Launched earlier this month, 'District' consolidates Zomato's going-out services, including dining, movie, and event bookings, and will be available to the public soon.
The acquisition marks Zomato's deeper entry into lifestyle services, adding event ticketing, sports, shopping, and more to its portfolio. According to Zomato CEO Deepinder Goyal, the company has been growing its ticketing business and generated Rs 3,225 crore in Gross Order Value (GOV) in FY24, reflecting a 136% year-on-year growth.
Paytm's ticketing business, which includes acquisitions like Insider and TicketNew, reported Rs 297 crore in revenue for FY24. The business achieved a GOV of over Rs 2,000 crore, selling 78 million tickets to more than 10 million users.
As part of the deal, 280 Paytm employees will join Zomato. Goyal highlighted that this acquisition involves integrating a new team and ensuring cultural alignment, which is key to its success.
Industry experts suggest the acquisition will help Zomato enhance the discoverability of events and entertainment options, integrating ticketing with its food offerings and loyalty programs. With online ticket booking already dominating the market, Zomato aims to capture a larger share of users' lifestyle spending.
The move is strategic as the food delivery market matures, with Zomato and competitors like Swiggy diversifying into new sectors. Although brokerages estimate that Paytm Insider may initially contribute only 2.5% to Zomato’s overall revenue, the long-term growth potential is significant.
India’s live events and ticketing market continues to grow, driven by demand in Tier II cities, new sports events, and rising disposable incomes. Zomato’s entry into this space through an integrated platform could reshape the entertainment landscape.
For Paytm, the deal represents a profitable exit, allowing it to focus on its core payments and financial services business. The company stated that the proceeds from this transaction would strengthen its balance sheet and support further growth in its main business areas.
With this acquisition, Zomato aims to build a comprehensive lifestyle ecosystem, positioning itself as a one-stop destination for dining, events, and more, as it continues to expand beyond food delivery.