In a strategic move to expand its “going out” offerings, food delivery giant Zomato is in talks to acquire Paytm’s movie and event ticketing business. Both companies acknowledged the discussions in regulatory filings, though they insist that no binding agreement has been reached.
For Zomato, the acquisition would significantly bolster its efforts to become a one-stop shop for dining and entertainment. The company has been making inroads into event ticketing with its “Zomato Live” platform and popular food carnival “Zomaland.” With a war chest of over $1.4 billion, Zomato seems well-positioned to make its third major acquisition, following successful deals for Blinkit and Uber Eats India.
Meanwhile, Paytm appears to be streamlining to focus on its core fintech business amidst regulatory scrutiny. The ticketing unit, built through acquisitions of Insider.in and TicketNew, contributed 9% of Paytm’s overall revenues last quarter. However, recent filings reveal the two ticketing subsidiaries posted combined losses of Rs $2.85 million in FY23.
