In a bold move to broaden its offerings, Indian food delivery giant Zomato has acquired Paytm’s entertainment ticketing business for $244.1 million. This strategic purchase, one of the largest M&A deals among India’s emerging tech firms, encompasses Paytm’s ticketing services for movies, sports, and events.
With this acquisition, Zomato is not only diversifying its services but also capitalizing on a surge in its stock market performance. Zomato’s shares have more than doubled this year, driven by the success of its quick commerce division, Blinkit, which UBS recently valued at $15.4 billion—surpassing the value of its core food delivery operations.
The deal will see Paytm’s ticketing services remain on its flagship app for up to a year, and approximately 280 Paytm employees will join Zomato. This acquisition aligns with Zomato’s vision to become a comprehensive destination for dining and entertainment. According to Bank of America analysts, this move could enhance Zomato’s relevance and pave the way for a new app, “District,” aimed at integrating various entertainment and dining experiences under one roof.
Zomato’s founder and CEO, Deepinder Goyal, highlighted that the acquisition will add significant scale and new functionalities, offering users a unified platform for both food and entertainment.
On the flip side, Paytm is refocusing on its core fintech operations, as regulatory pressures intensify. The company’s ticketing division, previously acquired through Insider.in and TicketNew, contributed about 9% to Paytm’s recent revenues. This sale underscores Paytm’s commitment to its primary focus on financial services and payments.
As Zomato forges ahead with its expanded portfolio, it remains to be seen how the integration of Paytm’s ticketing services will shape the future of both companies and the broader tech landscape.
