Food delivery giant Zomato has confirmed ongoing discussions to acquire Paytm’s movie and ticketing business, ending recent speculation, according to an exchange filing.
“We acknowledge that we are in discussions with Paytm for the aforementioned transaction. However, no binding decision has been taken at this stage that would warrant board approval and subsequent disclosure in accordance with applicable law,” stated Zomato in the filing.
“The above discussion is being undertaken with an intent to further strengthen our Going-out business and is in line with our stated position of focusing only on our four key businesses currently,” the filing added.
Paytm also confirmed the preliminary, non-binding discussions about the potential transfer of its entertainment business in its own exchange filing.
Should the deal proceed, it would mark one of Zomato’s largest acquisitions. Previously, Zomato acquired Uber Eats in 2020 and the quick commerce platform Blinkit (formerly Grofers) in 2021 in an all-stock deal valued at Rs 4,447 crore.
This potential acquisition aligns with Zomato’s strategy to enhance its “Going-out” segment, which includes dining out, events, and entertainment services. Integrating Paytm’s movie and ticketing business would enable Zomato to offer a more comprehensive range of activities and experiences to its users.
The discussions are still in the early stages, with both companies evaluating the potential benefits and implications of the transaction. If successful, the deal could significantly boost Zomato’s presence in the entertainment and events market.
This development follows Zomato’s recent efforts to streamline operations and concentrate on core business areas, including food delivery, dining out, and quick commerce.
For Paytm, divesting its movie and ticketing business could allow it to better focus on its core financial services and other critical areas, as it continues to optimize its business portfolio.