Zomato has acquired financial services firm Paytm’s entertainment ticketing business for $244.1 million as the Indian food delivery giant expands its focus into new areas of growth.
Paytm’s entertainment ticketing business includes movies, sports and events. The Indian financial services firm’s eponymous app will continue to host the offerings on its app for up to 12 months, Paytm said.
The move comes at a time when Zomato, whose shares have surged more than 100% this year as its quick commerce offerings make deeper inroads in India, is looking for expanding into new areas. For Zomato, the acquisition could significantly bolster its efforts to become a one-stop shop for dining and entertainment, Bank of America analysts said.
Meanwhile, Paytm has been streamlining to focus on its core fintech business amidst regulatory scrutiny. Its ticketing unit, built through acquisitions of Insider.in and TicketNew, contributed 9% to Paytm’s overall revenues last quarter.
“Paytm’s move to sell its entertainment ticketing business underscores its core focus on payments and financial services distribution,” Paytm said in a stock exchange filing.
This is a developing story. More to follow.
