Zomato in talks to acquire Paytm's ticketing business: Report
What's the story
Zomato, a leading food delivery service, is reportedly in advanced negotiations to acquire Paytm's movie ticketing and events business. The potential deal is part of Zomato's strategic plan to enhance its 'going out' offerings, and could value Paytm's vertical at around ₹1,500 crore, as per The Economic Times. If the acquisition is successful, it would be Zomato's second-largest purchase after its acquisition of Blinkit (formerly Grofers) in 2021.
Strategic alignment
Zomato's acquisition strategy aligns with broader goals
The potential acquisition aligns with Zomato's broader goal of meeting consumer demand across various sectors including food, grocery, and entertainment. "Paytm Movies and Paytm Insider are being merged to create synergies between the two teams, with the goal of building a unified unit," a source told The Economic Times. "Zomato's longstanding interest in this segment makes this acquisition a natural fit," the source added.
Acquisition history
Zomato's previous acquisitions and market presence
Zomato has a history of strategic acquisitions. In 2021, it acquired Blinkit for ₹4,447 crore in an all-stock deal. The potential acquisition of Paytm's ticketing business would further strengthen Zomato's market presence in the 'going out' sector. The company's interest in this segment is evident from its recent launch of Zomato Events, a platform that allows users to discover and book events.