Zomato has said that it is in talks with fintech player Paytm to acquire its movie and ticketing business. This comes at a time when Paytm is focusing on core businesses of payments and financial services. At the same time, the food delivery major is looking to tap into the growing consumer demand in the “going-out” and entertainment segment.
In a BSE filing, Zomato acknowledged discussions are on with Paytm to acquire its 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,” the food delivery company stated. The company’s B2C business consists of food delivery, quick commerce through Blinkit and going-out with Zomato entertainment, while its B2B business comprises of its kitchen supplies and end-to-end restaurant chain solution Hyperpure.
Meanwhile, in a BSE filing, One97 Communications Ltd, the parent of Paytm, said, ”The Company routinely explores various strategic opportunities aimed at enhancing shareholder value. The potential transfer of Paytm’s Entertainment business, a component of our Marketing Services, is one opportunity under consideration.“ It added that this was in line with its strategy to focus on “payment, financial services, and digital goods commerce.”It added that the discussions that are currently underway are “preliminary” .
Both the companies said that the discussions “do not involve any binding agreements.”
In Q4FY24, Zomato reported that the going-out business recorded over 200 per cent growth in terms of Gross Order value at Rs 1069 crore. Infact, the company has been ramping up investments in its quick commerce and events arms. It is investing Rs ₹100 crore in Zomato Entertainment, which specialises in curating and selling tickets for concerts, parties, and festivals. It is also investing ₹300 crore in Blinkit , its quick commerce arm.