Zomato has agreed to pay Rs 2,048 crore to Paytm for its movie and event ticketing businesses, the digital payments company announced in a filing to the stock exchange on Wednesday.
The business declared that it will now concentrate on improving the delivery of financial services and core payments.
The company that owns the Paytm brand, One 97 Communications Limited (OCL), claimed, “Paytm agrees to sell Entertainment Ticketing Business to Zomato for Rs 2,048 cr; strengthens focus on core payments and financial services distribution.”
“This deal, valued at Rs 2,048 crores on a cash-free, debt-free basis, stands as a testament to the value Paytm has created through its entertainment ticketing business, bringing choice and convenience to millions of Indians with its services and scale,” the business added.
The exchange filing states that OCL will give Zomato its entertainment ticketing business in the following ways as part of the agreement:
– The entertainment ticketing division of OCL is being transferred to Wasteland Entertainment Pvt Ltd (WEPL) and Orbgen Technologies Pvt Limited (OTPL), two of its 100% subsidiaries. additionally
– Giving Zomato a 100% ownership share in its subsidiaries OTPL and WEPL, which run the Insider and TicketNew platforms, respectively. About 280 current employees of the entertainment ticketing company will also be transferred.
The company announced that throughout a transition time of up to 12 months, the entertainment ticketing business, which includes movies, sports and events, will continue to be offered on the Paytm app.
In 2017 and 2018, Paytm developed movie ticketing and paid Rs 268 crores to purchase TicketNew and Insider.
“By meeting the demands of the market at the time, we established the entertainment ticketing company. As ownership passes to Zomato today, we would want to express our gratitude to each and every team member who helped to establish this company. Growing this firm with an amazing team has been an honour. A Paytm representative stated, “With this move, we can continue to focus on long-term growth in our core areas and value creation for all stakeholders.”