Paytm is in talks with Zomato Ltd. to divest its movie and events ticketing division as part of a strategic overhaul in response to declining sales.
Negotiations between One97 Communications Ltd., parent company of Paytm, and online food delivery giant Zomato are reportedly at an advanced stage. Sources familiar with the matter, speaking on condition of anonymity due to the confidential nature of the discussions, mentioned that other prospective buyers have also expressed interest in the business.
Following its first-ever sales decline reported last month, Paytm, under billionaire founder-CEO Vijay Shekhar Sharma’s leadership, announced plans to streamline non-core assets and suggested potential job cuts. Regulatory actions impacting Paytm Payments Bank Ltd., a key component of its operations, have prompted the company to seek new partnerships with other lenders, as per the report.
Since the central bank’s intervention earlier this year, Paytm has encountered substantial operational challenges, especially given its previous heavy reliance on the bank for digital wallets and payment transactions.
Also Read: Shiv Sena MP’s Brother-in-law Accused Of Using Phone To Unlock EVM
Neither Paytm nor Zomato responded to requests for comments outside regular business hours.
While Paytm does not break down figures specifically for its movie and events ticketing business, it reported annual sales of 17.4 billion rupees ($208 million) for its broader marketing services segment in the fiscal year ending March 2024. This segment encompasses activities such as credit card marketing and gift vouchers in addition to movie and events ticketing.
Successfully selling the division would allow Paytm to focus on expanding its merchant base and increasing overall sales in key sectors such as travel, deals, and cashback.
Acquiring Paytm’s movie and events ticketing business could represent a substantial entry into a burgeoning digital sector for Zomato. In 2020, Zomato bolstered its market presence by acquiring Uber Technologies Inc.’s India food unit.
