One 97 Communications Limited, the parent company of Paytm, announced on Wednesday that it will sell its entertainment ticketing business to Food delivery giant Zomato for Rs 2048 crore ($244.2 million). The sale includes ticketing services for movies, sports, and events. During a transition period of up to 12 months, these services will continue to be available on the Paytm app, the company stated.
"One 97 Communications Limited (OCL)today announced, that it has entered into definitive agreements for the sale of its entertainment ticketing business that includes movies, sports and events (live performances) ticketing to Zomato Limited," the company said in a statement. The deal, valued at Rs 2,048 crore, underscores the value Paytm has created through its entertainment ticketing business, bringing choice and convenience to millions of Indians with its services and scale, the company said.
Zomato's strategic entry into online ticketing market
Meanwhile, the development marks Zomato's strategic entry into India's burgeoning online ticketing market, which has been predominantly led by Reliance-backed BookMyShow. Paytm, which has been BookMyShow's closest competitor since 2017, will now hand over its market share to Zomato by selling its 'ticketnew' platform, which sells movie tickets, as well as its 'Insider' platform, which handles tickets to live events.
Paytm exits ticketing, Zomato expands horizons
Paytm built its movie ticketing business in-house and acquired Insider and TicketNew for Rs 268 billion between 2017 and 2018. However, the company is now exiting these businesses to focus on its core payments and financial services operations, following a February order from the RBI to wind down its banking unit. For Zomato, the move aligns with its efforts to expand its non-core businesses, which include restaurant table booking services and an events organizing and ticketing unit. Listen to the latest songs, only on JioSaavn.com. The two units, which accounted for 2% of Zomato's total revenue last year, were also its fastest-growing segments.
(With inputs from agencies)
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