Zomato has acquired the entertainment ticketing business from Paytm for $244.1 million. This deal represents a strategic expansion of Zomato’s offerings in the “going out” category.
The acquisition, one of the largest mergers among emerging Indian tech firms, includes Paytm’s services for booking tickets for movies, sports, and events. Under the agreement, these services will remain available on Paytm’s flagship app for up to 12 months, according to Paytm’s stock exchange filing.
Zomato’s acquisition comes during a period of strong stock market performance, with shares more than doubling in value this year. This growth is largely attributed to the success of its quick commerce service, Blinkit, which UBS recently valued at $15.4 billion—surpassing Zomato’s core food delivery business.
As of Wednesday, Zomato’s market cap stood at $27.3 billion, with $1.5 billion in cash reserves. The acquisition is part of Zomato’s broader strategy to diversify its service portfolio. Analysts at Bank of America noted that this move strengthens Zomato’s goal of becoming a comprehensive platform for dining and entertainment. They pointed out that Zomato is shifting its focus from purely “dining-out” to include ticketed events and food festivals like Zomaland.
Meanwhile, Paytm is concentrating on its core fintech operations amidst increasing regulatory pressures. Paytm’s ticketing division, built through its acquisitions of Insider.in and TicketNew for about $32 million, accounted for 9% of its total revenue in the last quarter. Paytm said this sale aligns with its focus on payments and financial services distribution.
