New Delhi: In a significant move, Paytm, India’s leading digital payments platform, has announced the sale of its entertainment ticketing business to Zomato, the country’s largest food delivery company. The deal, valued at Rs 2,048 crore, is expected to close within this quarter.
As part of the agreement, Paytm will transfer its entertainment ticketing business, including movie, sports, and live performance ticketing, to Zomato. The transaction includes the transfer of Paytm’s subsidiaries, Orbgen Technologies Pvt Limited (OTPL) and Wasteland Entertainment Pvt Ltd (WEPL), which operate the TicketNew and Insider platforms, respectively.
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Key Highlights of the Deal:
- Transaction Value: Rs 2,048 crore on a cash-free, debt-free basis.
- Transfer of Business: Paytm will transfer its entertainment ticketing business to Zomato through its subsidiaries.
- Employee Transfer: 280 employees from the entertainment ticketing business will also be transferred to Zomato.
- Transition Period: Movie and event tickets will continue to be available on the Paytm app for up to 12 months.
Paytm’s spokesperson expressed satisfaction with the deal, stating that it allows the company to focus on its core areas and create long-term value for its stakeholders. Zomato, on the other hand, is expected to benefit from the acquisition by expanding its offerings and strengthening its position in the entertainment market.
The transaction is subject to the satisfaction of agreed conditions precedent and is expected to close within this quarter.
