Zomato is expanding its business portfolio by acquiring Paytm Insider, the entertainment and events ticketing division of One97 Communications Limited (OCL), in a deal valued at Rs 2048.4 crore. This strategic acquisition is set to enhance Zomato’s reach beyond food delivery and into the realm of entertainment ticketing.

The acquisition has been approved by Zomato’s board and involves a comprehensive transaction structure. According to a regulatory filing, Zomato has entered into a Share Purchase and Subscription Agreement (SPSA) with OCL, Wasteland Entertainment Private Limited (WEPL), and Orbgen Technologies Private Limited (OTPL) to finalise the deal.

Under the agreement, OCL will transfer its movie, sports, and events ticketing businesses to its subsidiaries OTPL and WEPL through a slump sale. OCL will then inject capital into these subsidiaries via preferential allotment, using the proceeds to cover the slump sale payment. Zomato will acquire OCL’s entire stake in OTPL and WEPL, making them wholly owned subsidiaries of Zomato.

The acquisition is expected to be completed within 90 days of signing the SPSA. OTPL’s acquisition is valued at Rs 1,264.6 crore, while WEPL’s is valued at Rs 783.8 crore.

This move aligns with Zomato’s strategy to diversify its offerings and bolster its “Going-out” segment. The company aims to build on its dining and food delivery services by integrating entertainment ticketing into its portfolio.

OTPL, operational since 2007, specializes in movie ticket listings and recorded a turnover of Rs 13.14 crore for the year ending March 31, 2024. WEPL, established in 2015, focuses on event ticketing and generated Rs 236.03 crore over the same period.

Zomato’s entry into the ticketing market complements its recent launch of ‘District,’ an app designed to consolidate its “going-out” services. Founder and CEO Deepinder Goyal highlighted the potential for expanding Zomato’s offerings, including movies, sports, live performances, shopping, and staycations.

The acquisition follows earlier indications from Zomato about its interest in Paytm’s entertainment businesses and marks a significant step in integrating food and entertainment into a unified consumer experience.

In a social media post, Paytm welcomed Zomato to the entertainment sector, reflecting the collaborative spirit of the transition.

This deal signifies a bold new direction for Zomato as it seeks to strengthen its presence in India’s dynamic consumer landscape.

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