Zomato's strategic alignment with Paytm's event and movie ticketing business is well-suited, as it aligns with the company's overarching goal of catering to customer demand in many categories such as food, groceries, and entertainment.
If this transaction is completed, it will be Zomato's second-largest acquisition after the all-stock, Rs 4,447 crore deal it made in 2021 to acquire the fast commerce platform Blinkit (previously Grofers).
Bloomberg reported that the food delivery behemoth Zomato is in advanced talks to buy Paytm's movie tickets and events division, citing people with knowledge of the negotiations.
There are apparently advanced stages of discussions between Zomato, the largest online meal delivery provider, and One97 Communications Ltd., the parent company of Paytm.
Zomato's strategy of broadening its 'going out' options is in line with this tactical approach. An Economic Times story states that the prospective acquisition may be worth about Rs 1,500 crore for Paytm's vertical.
If approved, this transaction will become Zomato's second-largest acquisition after the company bought fast commerce platform Blinkit (previously Grofers) in 2021 for an all-stock sum estimated to be worth Rs 4,447 crore, the article said.
Zomato's strategic alignment with Paytm's event and movie ticketing business is well-suited, as it aligns with the company's overarching goal of catering to customer demand in many categories such as food, groceries, and entertainment.
The article also said that Paytm has been forced by regulatory actions to form new alliances with other lenders. The Bloomberg article states that no decision has been made that is definitive yet.
Paytm does not release specific sales data for its movie and event ticketing business, but for its larger marketing services segment—which encompasses this business as well as gift cards and credit card marketing—it reported 17.4 billion rupees ($208 million) in sales for the fiscal year that ended in March 2024.
With a successful sale, Paytm would be able to focus on three key areas: travel, promotions, and cashback. These areas are essential for growing its merchant base and increasing total sales.
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