Zomato in talks with PayTM over Movie Ticketing Business; Zomato Founder says Deal not done yet
Contending food delivery service supplier Zomato announced on June 16 that through a filing of disclosure to the stock exchanges, it had talks for buying Paytm’s movie ticketing and events business.
This came after media reports said the country’s largest digital wallet firm, One 97 Communications Ltd., which owns Paytm, and Zomato was in the final stage of discussions for a Rs.1,500 crore deal.
However, responding to the speculation regarding the transaction with Paytm, Zomata said, “We have disclosed that we are in discussion with PayTM for the transaction; however, at this stage, no decision has been made that could be considered final and which would necessitate Board approval, let alone compliance with regulation that requires the disclosure of the transaction to the market.”
This strategic move corresponds to Zomato’s plan to expand its ‘going out’ categories. The said discussion is hence being undertaken with an intent to fasten the growth of going-out businesses and thus is in parity with the assessee’s stated policy of focusing on a mere four business streams.
Events and movie ticketing are a good fit for Paytm and are in line with Zomato’s broader objective of getting demand share in food, groceries, and even other small consumer products.
A successful sale would help Paytm focus on travel, deals, and cashback—the zones critical for increasing the company’s merchant network and overall sales figures.
