News

Published: August 22, 2024
Updated: August 22, 2024

Paytm and Zomato Shares in Spotlight After Landmark ₹2,048 Crore Deal

Strategic Move to Focus on Core Businesses

Paytm has agreed to sell its entertainment ticketing business to Zomato for ₹2,048 crore, allowing Paytm to focus on its core payments and financial services distribution. This strategic move is expected to benefit both companies.

Details of the Deal

The deal includes the sale of Paytm's movie, sports, and events ticketing business. Zomato will acquire the business at a fair valuation of 1x trailing Enterprise value/FY24 GOV multiple. A total of 280 Paytm employees will transition to Zomato.

Transition and Integration

During the transition period, movie and event tickets will remain available on the Paytm app, as well as on the TicketNew and Insider platforms, ensuring a seamless experience for users and merchant partners. The transaction is expected to close within this quarter.

Financial Performance of the Business

In FY24, the entertainment ticketing business reported revenues of ₹297 crore and adjusted Ebitda of ₹29 crore. The business acquired generated a combined gross merchandise value (GOV) of ₹2,000 crore, up 29% YoY.

Zomato's Expansion Plans

Zomato is expanding its going-out business, which includes dining-out and event ticketing. The company aims to build more use-cases for this business, which is already profitable and large.

The deal between Paytm and Zomato marks a significant strategic move for both companies. Paytm will focus on its core businesses, while Zomato expands its offerings in the entertainment ticketing space. Investors can expect a smooth transition and potential long-term benefits from this deal.