Food delivery giant Zomato has officially acknowledged that it is in discussions with Paytm to acquire the latter’s movie and ticketing business, as per their stock exchange filings. Paytm has also confirmed these talks in a separate filing.
Reports suggest that Zomato is looking to purchase Paytm’s movies and ticketing segment for an estimated ₹1,600-1,750 crore ($190-210 million).
In its filing, Zomato stated, “We confirm that discussions with Paytm are ongoing for the mentioned transaction; however, no binding decision has been made that necessitates Board approval and subsequent legal disclosure.” Zomato emphasized that this move aims to strengthen its “going-out” business and aligns with its focus on the company’s four primary business areas.
Paytm reiterated that these talks are preliminary and non-binding. “As highlighted in our earnings call, our focus will remain on payment and financial services along with digital goods commerce to support our merchants’ business growth,” Paytm stated in its BSE filing.
Both companies clarified that any current discussions are speculative and have not resulted in any binding agreements.
These discussions occur amidst reports of significant layoffs at Paytm, which experienced its first revenue decline in Q4 due to Reserve Bank of India-imposed restrictions over regulatory compliance issues. Paytm expects to recover by Q2, showing stabilization or growth in consumer and merchant base metrics starting April/May.
If the acquisition proceeds, Zomato would further expand its events business, challenging competitors like BookMyShow. Recently, Zomato announced a ₹100 crore ($12 million) investment in Zomato Entertainment, its subsidiary overseeing live events and ticketing.
