Zomato Acquires Paytm's Ticket Business for $244 Million

In a significant move to enhance its service offerings, Zomato, the prominent Indian food delivery platform, has acquired the entertainment ticketing business of Paytm for $244.1 million. This acquisition, one of the largest in the Indian tech sector, encompasses Paytm's ticketing services for movies, sports, and events. As part of the agreement, Paytm's flagship app will continue to feature these services for up to a year, and approximately 280 employees from Paytm will transition to Zomato. The acquisition comes at a time when Zomato's stock has seen remarkable growth, with shares increasing over 100% this year. The company’s quick commerce service, Blinkit, has been valued at $15.4 billion by UBS, surpassing the valuation of Zomato's core food delivery business. With a market capitalization of $27.3 billion and $1.5 billion in cash reserves, Zomato is well-positioned to diversify its offerings, according to analysts from Bank of America. Zomato's founder, Deepinder Goyal, emphasized that this acquisition will allow the company to expand its scale and introduce new use cases, such as movie and sports ticketing, enhancing its relevance to customers. The company plans to launch a new app called "District," aimed at consolidating dining and entertainment options under a single brand. Meanwhile, Paytm is shifting its focus back to its core fintech operations amid regulatory scrutiny. The ticketing division, which contributed about 9% to Paytm's recent revenues, was built through previous acquisitions, highlighting the company's strategic pivot towards payments and financial services.