Paytm Set to Sell Movie Ticketing Biz to Zomato: A Big Move by Vijay Shekhar Sharma’s One97 Communications!

New Delhi: Paytm is reportedly in advanced discussions with Zomato Ltd. to sell its movie and events ticketing division. This move is part of Paytm’s effort to revive its business amid declining sales, according to sources familiar with the situation.

Ongoing Discussions with Zomato

Paytm, which operates under One97 Communications Ltd., is also considering other buyers, but Zomato appears to be a strong contender. The discussions are ongoing, and no final decision has been made yet, the sources added, requesting anonymity due to the private nature of the talks.

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Founded by billionaire CEO Vijay Shekhar Sharma, Paytm recently announced its first sales decline and indicated plans to sell off non-core assets. The company also warned of potential job cuts due to regulatory actions impacting its Paytm Payments Bank Ltd., which had been crucial for its digital wallets and payment services. As a result, Paytm is now seeking new partnerships with lenders.

Neither Paytm nor Zomato have commented on the matter.

Revenue from Ticketing Business

Paytm doesn’t separately disclose revenue for its movie and events ticketing business but reported total annual sales of ₹17.4 billion ($208 million) in its marketing services, which also includes credit card marketing and gift vouchers.

Selling the movie ticketing business would help Paytm focus more on its core areas like travel, deals, and cashback offers, essential for expanding its merchant base and boosting sales. For Zomato, acquiring this business could be an opportunity to grow its digital footprint in a new and rapidly expanding market. This follows its 2020 acquisition of Uber Technologies Inc.’s India food unit.