One 97 Communications Limited (OCL), the parent company of Paytm, has announced the sale of its entertainment ticketing business to Zomato Limited for ₹2,048 crore.
The transaction, structured as a cash-free, debt-free deal, underscores Paytm’s sharpened focus on its core areas of payments and financial services distribution.
The entertainment ticketing business, which includes movie, sports, and event ticketing services, will be transferred to Zomato via Paytm’s subsidiaries, Orbgen Technologies Pvt Limited (OTPL) and Wasteland Entertainment Pvt Ltd (WEPL).
These subsidiaries operate the popular TicketNew and Insider platforms, respectively.
The deal will also see approximately 280 Paytm employees joining Zomato, ensuring continuity in operations.
Paytm’s decision to divest its entertainment ticketing arm comes after years of building the business from the ground up.
The company had acquired TicketNew and Insider for a combined ₹268 crore between 2017 and 2018, successfully scaling the business to achieve revenues of ₹297 crore and an Adjusted EBITDA of ₹29 crore in FY24.
During the transition period, which could last up to 12 months, users will continue to have access to movie and event tickets through the Paytm app, as well as on the TicketNew and Insider platforms.
This arrangement aims to provide a seamless experience for customers and merchant partners alike.
Paytm’s move is seen as a strategic pivot to intensify its efforts in the financial services sector.
The company has been expanding its footprint in insurance, equity broking, and wealth distribution, with plans to leverage its existing customer base for cross-selling opportunities.
A spokesperson for Paytm commented, “We built the entertainment ticketing business by addressing the market needs of the time. Today, as it transitions to Zomato ownership, we thank every team member who contributed to building this business. It has been a privilege to grow this business with an incredible team. This move allows us to continue focusing on long-term growth in our core areas and value creation for all stakeholders”
The transaction, which has received advisory and valuation support from Deloitte Touche Tohmatsu India LLP and Morgan Stanley, with legal counsel from Luthra & Luthra, is expected to close within this quarter, pending the fulfillment of all closing conditions.
