Paytm Sells Entertainment Ticketing Business to Zomato for Rs 2,048 Crores
New Delhi, India – One 97 Communications Limited (OCL), the owner of Paytm, has announced the sale of its entertainment ticketing business to Zomato Limited. The deal, valued at Rs 2,048 crores, includes movies, sports, and live events ticketing.
As part of the agreement, OCL will transfer its entertainment ticketing business to Zomato by selling its subsidiaries, Orbgen Technologies Pvt Limited (OTPL) and Wasteland Entertainment Pvt Ltd (WEPL), which operate the TicketNew and Insider platforms, respectively. This transfer will also include 280 existing employees from the entertainment ticketing business.
The transaction value is subject to cash and net working capital adjustments at closing, and the closure is expected within this quarter, subject to agreed conditions. During a transition period of up to 12 months, movie and event tickets will continue to be available on the Paytm app, as well as on the TicketNew and Insider platforms.
Paytm’s move to sell its entertainment ticketing business highlights its focus on payments and financial services. The company has expanded its offerings in insurance, equity broking, and wealth distribution, aiming to grow its market presence as a leading financial services distribution player.
A Paytm spokesperson expressed gratitude to the team members who contributed to building the entertainment ticketing business and emphasized the company’s commitment to long-term growth in its core areas.
Deloitte Touche Tohmatsu India LLP provided transaction advisory and valuation, while Morgan Stanley assisted Paytm with fairness opinion on the transaction. Luthra & Luthra acted as legal counsel to Paytm.
Doubts Revealed
Paytm -: Paytm is a popular Indian company that provides digital payment and financial services. People use it to pay bills, transfer money, and buy things online.
Zomato -: Zomato is an Indian company known for its food delivery services. It helps people order food from restaurants and get it delivered to their homes.
Rs 2,048 Crores -: Rs 2,048 Crores is a large amount of money in Indian currency. One crore is equal to ten million, so 2,048 crores is a very big number.
Entertainment Ticketing Business -: This means selling tickets for movies, sports events, and other fun activities. Paytm used to sell these tickets, but now Zomato will do it.
TicketNew and Insider -: TicketNew and Insider are companies that help sell tickets for events. They were part of Paytm but will now be part of Zomato.
280 employees -: Employees are people who work for a company. In this case, 280 people who worked for Paytm’s ticketing business will now work for Zomato.
Core areas -: Core areas are the main things a company focuses on. For Paytm, these are payments and financial services, like helping people send money or pay bills.
Uninterrupted service -: This means that people who use the ticketing service will not face any problems or breaks. They can continue to buy tickets without any issues.
Transaction -: A transaction is a business deal. Here, it means the process of Paytm selling its ticketing business to Zomato.
Quarter -: A quarter is a three-month period in a year. Businesses often divide the year into four quarters to manage their activities and finances.
