Zomato and Paytm confirm acquisition talks for the movie and ticketing business.

In a significant step, Zomato and Paytm have revealed that they are in negotiations to acquire Paytm’s movie and ticketing company. This disclosure comes after speculations that Zomato is aiming to buy Paytm’s movie and ticketing vertical for an estimated Rs 1,600-1,750,600-1,7190-210e ($190-210 million).

Confirmation of discussions

Both firms confirmed the ongoing conversations in their respective stock market reports. According to Zomato, in its filing, “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.” Similarly, Paytm confirmed the negotiations but stated that they are preliminary and do not include any formal agreements at this time. “Any information pertaining to these discussions should be considered speculative at this time,” Paytm stated.

Strategic intentions

The purchase negotiations are in line with Zomato’s strategic objective to strengthen its ‘going out’ business. Zomato has been working on improving its core sectors, and this prospective purchase aligns with its plan to grow its presence in the events industry. Zomato has announced a Rs 100 crore ($12 million) investment in Zomato Entertainment, a company that oversees its live events and ticketing operations. This move puts Zomato in direct competition with established companies such as BookMyShow in the events and ticketing business.

Paytm’s Strategy Shift

Paytm, on the other hand, focuses on its main business of payment and financial services, as well as digital products shopping. In its filing, Paytm stated, “Our focus will be on payment and financial services along with digital goods commerce, which are designed to help our merchants scale their businesses.” The corporation is purportedly going through a strategic revamp in response to dwindling revenues and regulatory issues. This prospective divestiture of its movie and event ticketing sector is part of a larger drive to simplify operations and focus on its core business divisions.

Market Implications:

The revelation of the conversations comes as Paytm is allegedly laying off personnel and witnessing a revenue loss, notably in Q4 owing to Reserve Bank of India limitations. Paytm, on the other hand, is confident about a comeback beginning in Q2, driven by customer and merchant base indicators that are stable or growing.

This possible purchase might be Zomato’s second-largest deal, after its all-stock acquisition of Blinkit (previously Grofers) in 2021, which was valued at Rs 4,447 crore. Zomato also intends to spend an additional Rs 300 crore in Blinkit, bringing its total investment in the rapid commerce platform to over Rs 2,300 crore.


The conversations between Zomato and Paytm over the purchase of the movie and ticketing company reflect the dynamic movements and strategic realignments in India’s internet and entertainment sectors. If the purchase goes through, it will considerably improve Zomato’s ‘getting out’ offers while allowing Paytm to focus on its core areas. Both firms have said that these negotiations are still in the earliest stages and that no binding agreements have been reached. The market reaction to this news is expected to play out once trade returns following the Christmas break. This development highlights the industry’s continuing consolidation and strategic realignment, which is motivated by the need to focus on core strengths and improve service offerings.

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