Zomato’s Bold Move: Acquires Paytm Insider for ₹2048.4 Crore | Read Now

Zomato has taken a significant step to expand its business horizons by acquiring Paytm Insider, the entertainment and events ticketing arm of One 97 Communications Limited (OCL), for ₹2048.4 crore. This acquisition marks Zomato's entry into the entertainment ticketing sector, complementing its existing strengths in food delivery and dining services. With this move, Zomato aims to strengthen its “going-out” segment, offering a more unified experience for its users.

Details of the Deal

Zomato has signed a Share Purchase and Subscription Agreement (SPSA) with OCL, Wasteland Entertainment Private Limited (WEPL), and Orbgen Technologies Private Limited (OTPL). According to the agreement, OCL will transfer its movie, sports, and events ticketing businesses to its subsidiaries, OTPL and WEPL. Following this, OCL will inject capital into these subsidiaries through preferential allotment, which will be used to cover the slump sale payment. 

Subsequently, Zomato will acquire OCL’s entire stake in both OTPL and WEPL, making them wholly-owned subsidiaries of Zomato. The transaction is expected to be completed within 90 days of signing the SPSA. The acquisition values OTPL at ₹1,264.6 crore and WEPL at ₹783.8 crore. This strategic acquisition will allow Zomato to venture into the entertainment ticketing market, bolstering its existing “going-out” services.

Zomato’s Strategic Focus

This acquisition aligns with Zomato’s broader strategy to strengthen its “going-out” segment. OTPL, which has been operational since 2007, specializes in movie ticket listings and reported a turnover of ₹13.14 crore as of March 31, 2024. WEPL, launched in 2015, focuses on event ticketing and recorded a turnover of ₹236.03 crore during the same period. The expertise and experience of these two companies are expected to significantly benefit Zomato, enabling it to offer a more comprehensive and enhanced experience to its users.

Paytm’s Playful Response

Following the acquisition, Paytm welcomed Zomato to the entertainment sector with a playful post on social media. This acquisition not only allows Zomato to diversify its business but also marks a strategic expansion into the entertainment space. The move builds on earlier reports from June 2024, when Zomato expressed interest in acquiring Paytm’s movies and events businesses. At that time, Zomato noted that this acquisition would strengthen its “going-out” segment and align with its plan to focus on its four core businesses.

Synergy with the ‘District’ App

This acquisition also dovetails with the launch of Zomato’s new app, ‘District,’ which is focused on consolidating its “going-out” offerings. Through this app, Zomato aims to provide users with a wide range of services, including movie and sports ticketing, live performances, shopping, and staycations, further expanding its dining-out business. Zomato’s founder and CEO, Deepinder Goyal, remarked, “We believe that there is an opportunity to further expand our going-out offering, building on top of our dining-out business. Additional use cases for customers in the going-out space include movies, sports ticketing, live performances, shopping, staycations, etc.”

The Road Ahead

This acquisition marks a new chapter for Zomato as it moves beyond food delivery and dining services to blend food and entertainment into a unified experience for its users. By entering the entertainment sector, Zomato has not only diversified its portfolio but also positioned itself as a more comprehensive platform catering to the evolving needs of Indian consumers. This move is expected to strengthen Zomato’s presence in India’s rapidly changing consumer landscape, allowing it to offer a broader and more engaging experience.

As Zomato integrates these new services, the company is set to redefine how users experience going out, whether it's dining at a restaurant, catching a movie, or attending a live event. With this acquisition, Zomato is poised to become a more versatile platform, offering a seamless blend of food and entertainment, and solidifying its grip on India’s consumer market. The future looks promising for Zomato as it embarks on this bold new journey, merging the worlds of food and entertainment to deliver a unique and enhanced experience to its users.

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