One 97 Communications Limited (OCL), which owns the brand Paytm, on Wednesday announced that it has entered into definitive agreements for the sale of its entertainment ticketing business that includes movies, sports and events (live performances) ticketing to online food delivery platform Zomato for Rs 2,048 crore.
Paytm in a stock exchange filing said that this move to sell its entertainment ticketing business “underscores its core focus on payments and financial services distribution”.
The company also said that movie and event tickets will continue to be available on the app, as well as on the TicketNew and Insider platforms during a transition period (up to 12 months).
“We built the entertainment ticketing business by addressing the market needs of the time. Today, as it transitions to Zomato ownership, we thank every team member who contributed to building this business. This move allows us to continue focusing on long-term growth in our core areas and value creation for all stakeholders,” a Paytm spokesperson said.
As part of this agreement, OCL will transfer its entertainment ticketing business to Zomato by “transfer of OCL’s entertainment ticketing business to its 100 per cent subsidiaries, Orbgen Technologies Pvt Limited (OTPL) and Wasteland Entertainment Pvt Ltd (WEPL), and selling 100 per cent stake in its subsidiaries OTPL and WEPL, which operate the TicketNew and Insider platforms, respectively to Zomato”.
The transfer will also include around 280 existing employees from the entertainment ticketing business, the company mentioned.
The acquisition comes at a time when Zomato’s stock market value has skyrocketed, with shares up more than 100 per cent this year as the food delivery giant’s quick commerce division expands in India.