Zomato Acquires Paytm's Entertainment Ticketing Units for Rs 2,048 Crores

Zomato has acquired Paytm subsidiaries OTPL and WEPL, enhancing its entertainment ticketing business. The Rs 2,048 crore deal aims to bring additional choice and convenience to consumers. Paytm will continue offering tickets during a transition period.

Zomato has announced the successful acquisition of Paytm's subsidiaries, WEPL and OTPL, to bolster its entertainment ticketing services. This acquisition, valued at Rs 2,048 crores, was confirmed by both companies in their filings with the stock exchanges on August 21.

Paytm, based in Noida, stated that the transaction highlights the significant value created by its entertainment ticketing business, offering extensive choices and convenience to millions of users. This Rs 2,048 crore deal is structured on a cash-free, debt-free basis.

As part of the agreement, Paytm's subsidiary OCL will transfer its entertainment ticketing operations to Zomato through its wholly-owned subsidiaries, OTPL and WEPL. This move will include the transfer of around 280 existing employees from Paytm's ticketing business to Zomato, which will now manage TicketNew and Insider platforms.

Paytm has decided to shift its focus primarily to payments and financial services distribution. During a transition period lasting up to 12 months, movie and event tickets will still be available on the Paytm app along with the TicketNew and Insider platforms, ensuring continued service for users and partners.

Paytm initially entered the movie ticketing market by building its services from scratch and later acquired TicketNew and Insider for Rs 268 crores between 2017 and 2018. Following the announcement, Zomato's shares saw a positive reaction, opening at Rs 256.20. Over the last six months, Zomato has delivered a 60 per cent return to its shareholders. (ANI)

(With inputs from agencies.)