On June 16, Zomato, the popular food delivery company, made it clear through a communication to the exchanges that it is currently in talks to acquire Paytm’s movie ticketing and events business. This clarification came after media reports indicated that negotiations for a deal worth Rs 1,500 crore between One97 Communications Ltd, the parent company of Paytm, and Zomato were at an advanced stage.
In their statement, Zomato acknowledged the ongoing discussions with Paytm for the transaction. However, they emphasized that no binding decision has been made yet, which would require approval from the board and subsequent disclosure in accordance with the law.
This strategic move by Zomato is in line with their plans to expand their ‘going out’ offerings. The company stated that these discussions aim to further strengthen their going-out business and align with their focus on their four key businesses.
Zomato’s interest in Paytm’s events and movie ticketing business is a strategic fit, as it complements their broader objective of capturing consumer demand across various categories, including food, grocery, and entertainment.
If the sale goes through successfully, it would enable Paytm to concentrate on travel, deals, and cashback, which are sectors crucial for expanding their merchant base and boosting overall sales.
