Requests for comments made outside of usual business hours were not answered by Paytm or Zomato. (Photo: Bloomberg)
According to sources with knowledge of the situation, Paytm is in discussions with Zomato Ltd. to sell its movie and event tickets division as the struggling fintech company devises a turnaround plan in the face of declining revenues.
There are other potential buyers for the company, according to those who declined to be identified since the talks between Paytm, formally known as One97 Communications Ltd., and online meal delivery company Zomato are advanced. According to the persons, discussions are still ongoing and no decision has been taken.
Run by billionaire Vijay Shekhar Sharma, the CEO of Paytm, the company said last month that its sales had dropped for the first time ever and promised to reduce non-core assets. In line with the consequences of regulatory action against Paytm Payments Bank Ltd., which has restricted a large portion of the fintech’s activity and compelled it to establish new relationships with lenders, it also issued a warning about job cutbacks.
Prior to the central bank’s intervention earlier this year, Paytm relied on the bank for digital wallets and payment flow, but it does not own the bank.
When contacted for comments outside of regular business hours, Paytm and Zomato did not reply.
Paytm does not reveal specific numbers pertaining to its movie and event ticketing operations. For the fiscal year ending in March 2024, it claimed yearly revenues of Rs 17.4 billion ($208 million) in its marketing services sector, which includes gift cards, credit card marketing, movie and event tickets, and more.
If the purchase goes through, Paytm will be able to concentrate more on the travel, offers, and cash back industries—areas that are critical to expanding its network of merchants and boosting its own revenue.
Zomato may be able to push its digital business into a new, fast-growing market thanks to the acquisition. It purchased the food division of Uber Technologies Inc. in India in 2020.