Fintech major Paytm is selling its Entertainment ticketing business to Zomato for 2048
crores.This could be seen as a strategy of Zomato, to expand in the various markets with diverse
customer ranges in order to capture them by offering services according to their taste and
preference.With this acquisition, Zomato is a competing against the major player in this sector
,BookMyShow which is backed by Reliance digital.
As per the agreement between Paytm and Zomato, Paytm wallet transfer its entertainment
ticketing business to tomato by transfer of ocl entertainment ticketing business to its subsidiaries
the whole of 100%, Orbgen technologies private limited (OTPL), and waste land private limited
(WEPL) where as 100% of stake and its subsidiaries OTPL and WBL which operate the Ticket New
and insider platforms respectively by Zomato would be sold off to them. Just transfer also
includes transfer of 280 existing employees from the entertainment ticketing business.
The movie ticketing business was built by Paytm ; in house and later on they acquired insider
and TicketNew platforms for 268 crores between the years 2017 and 2018. In the financial year
2024, the earnings before interest and tax of those particular sector came across 729 crores whereas this segments revenue came at 297 crores.
Why did Paytm opt for such move?
Paytm selling its entertainment ticketing business to Zomato could be viewed as a measure to
focus on its core activities and separating the extras off. To emergency leading financial services
distribution player Paytm has made several moves during the past few months .In the mean time,
the founder of Paytm Vijay Shekhar Sharma assured shareholders that Paytm will reach office on
delivery a long term sustainable and profitable business model and after issolving most of the
challenges they are facing right now they are now focusing on their path to deliver a long term
sustainable profitable business model ensuring high return on investment to their stakeholders.
As it is talk of the town, everyone knows that the last financial year was one of the hardest
experiences for PayTM since RBI reserve Bank of India place several restrictions on Paytm
payments Bank sighting its non complaints of various tax related measures. The company should
considered this as a major learning experience and focus on to improve its quality and other two
various complaints and rules put forward by the government.
In a nutshell, this mobile Paytm could be viewed as a measure to focus on the core activities and
instead of opting for the outsourcing method to focus on core activities the companies selling of
parts which isn’t related to their core. Stakeholders are viewing this from an optimistic poem so
that the company could regain what they have lost in the previous years and ensure a reasonable
return on investment to their stakeholders.
