In a move to bolster its “going-out” offerings, food delivery giant Zomato confirmed discussions with fintech company Paytm regarding the acquisition of Paytm’s movies and events ticketing business.
The news comes after days of speculation, and Zomato made the official confirmation in a filing with the BSE. The company stated the discussions are aimed at strengthening their “going-out” segment, which already includes services for restaurant dining and events like Zomaland.
Potential Second-Largest Acquisition for Zomato
While a final decision is yet to be reached, if successful, this acquisition would be Zomato’s second-largest, following their 2021 purchase of quick commerce platform Blinkit (formerly Grofers) in a stock deal valued at ₹4,447 crore.
Paytm Streamlining Operations
According to media reports, Paytm is looking to divest non-core assets as part of a strategic overhaul. The value of the movies and events business is estimated to be around ₹1,500 crore. Any potential transaction would require Board approval and subsequent disclosure in accordance with applicable law1.
Analysts Eye Growth Strategy
The potential acquisition has analysts watching Zomato’s growth strategy closely. Zomato has recently invested heavily in expanding its quick commerce delivery through Blinkit, facing stiff competition in that sector. This move suggests Zomato might be aiming to become a one-stop shop for both food delivery and entertainment experiences.
Zomato’s interest in Paytm’s movies and events business reflects its strategic focus on diversifying beyond food delivery. As the competition in online services space continues to evolve, this acquisition could open up new avenues for both companies.
Stay tuned for further updates as the negotiations progress.
