Paytm to Sell Entertainment Ticketing Business to Zomato for ₹2,048 Crore; Zomato to Own Paytm Insider

**New Delhi, August 21, 2024** – In a significant move within the Indian digital economy, Paytm, the leading digital payments platform, has announced the sale of its entertainment ticketing business to Zomato for ₹2,048 crore. The acquisition will see Zomato, the prominent food delivery giant, take ownership of Paytm Insider, one of India's top platforms for booking tickets to movies, concerts, and other events.

**A Strategic Acquisition**

The deal underscores Zomato's ambitions to diversify its service offerings beyond food delivery. By acquiring Paytm Insider, Zomato aims to integrate entertainment and dining experiences, offering users a seamless way to plan their outings, from booking event tickets to ordering food from nearby restaurants. This move could give Zomato a competitive edge in the lifestyle services sector, positioning it as a one-stop solution for urban leisure activities.

**Paytm's Strategic Divestment**

For Paytm, this sale is part of a broader strategy to streamline its business and focus on core areas such as financial services, payments, and e-commerce. The divestment of Paytm Insider, while significant, allows the company to unlock value from its non-core assets and reinvest in its primary business segments. Paytm’s founder and CEO, Vijay Shekhar Sharma, stated, “This transaction is in line with our vision to sharpen our focus on our core areas, enabling us to provide unparalleled service to our users.”

**Market Reactions and Future Prospects**

The market has reacted positively to the news, with shares of both companies seeing an uptick following the announcement. Industry analysts believe that this acquisition could help Zomato tap into a new revenue stream, especially as the entertainment industry in India continues to grow. Additionally, by acquiring Paytm Insider, Zomato could also gain access to a valuable customer base and extensive event partnerships, further enhancing its market position.

As the deal progresses, both companies are expected to work closely to ensure a smooth transition of operations. The acquisition is expected to be completed by the end of the fiscal year, pending regulatory approvals.

The acquisition of Paytm Insider by Zomato marks a significant shift in the Indian digital landscape. As both companies continue to evolve and expand their offerings, this deal could pave the way for more cross-industry collaborations in the future, further blurring the lines between entertainment, dining, and digital services.