One 97 Communications Limited (OCL), the parent company of Paytm, has announced the sale of its entertainment ticketing division to Zomato Limited in a deal valued at Rs 2,048 crores.
This transaction marks a significant shift for Paytm, as it focuses on its core business areas of payments and financial services.
The deal, conducted on a cash-free, debt-free basis, will see Zomato acquire Paytm's entertainment ticketing assets, which include the TicketNew and Insider platforms operated through OCL’s 100% subsidiaries, Orbgen Technologies Pvt Limited (OTPL) and Wasteland Entertainment Pvt Ltd (WEPL). The sale also includes the transfer of 280 employees associated with the entertainment ticketing business.
Paytm's decision to divest its entertainment ticketing segment is part of its strategic move to streamline its operations and enhance its focus on core areas like payments, insurance, equity broking, and wealth distribution. This shift aims to leverage growth opportunities within these sectors and bolster its position as a leading financial services provider.
For up to 12 months following the transaction, movie and event tickets will remain available on both the Paytm app and the TicketNew and Insider platforms to ensure a seamless transition for users and merchants.
Paytm initially built its entertainment ticketing business from scratch and further expanded it through the acquisitions of TicketNew and Insider for a total of Rs 268 crores between 2017 and 2018. The company invested significantly to scale up the business, demonstrating its commitment to long-term value creation.
A Paytm spokesperson expressed gratitude towards the team for their role in developing the ticketing business and emphasized the company's commitment to focusing on growth in its core financial services areas.
Deloitte Touche Tohmatsu India LLP provided transaction advisory and valuation services, while Morgan Stanley offered fairness opinions. Luthra & Luthra served as legal counsel for Paytm in this transaction. The deal is anticipated to close within this quarter, pending the fulfillment of all closing conditions.
