Paytm Confirms Talks With Zomato To Sell Ticketing Business

One 97 Communications Ltd. is in talks with Zomato Ltd. to sell its "entertainment" business, both companies confirmed in exchange notifications on Sunday. The entertainment business on sale includes Paytm Movies and events ticketing business, Insider, among other services.

"The company routinely explores various strategic opportunities aimed at enhancing shareholder value. The potential transfer of Paytm’s Entertainment business, a component of our marketing services, is one opportunity under consideration," One 97 Communications said in its note. The company did not specify who it was in talks with.

In a separate notification, Zomato acknowledged that it was in talks with Paytm for this business. It added that this deal was being pursued with an intent to further strengthen its going-out business and is in line with Zomato's stated position of focusing only on four key businesses currently.

"We acknowledge that we are in discussions with Paytm for the aforementioned transaction, however, no binding decision has been taken at this stage that would warrant a board approval and subsequent disclosure in accordance with applicable law," Zomato said.

On Sunday, Bloomberg had reported that talks between the two firms were ongoing.

Paytm does not disclose standalone numbers for its movie and events ticketing business. It reported annual sales of Rs 1,740 crore in the financial year ended March 2024 in its marketing services business, which includes movie and events as well as credit card marketing and gift vouchers.

The sale, if successful, will allow Paytm to sharpen its focus on travel, deals and cash backs - businesses that are important to broaden its merchant base and grow its own sales, Bloomberg reported.