One 97 Communications Limited (OCL), which owns the brand Paytm, has announced the sale of its entertainment ticketing business to Zomato Limited. This deal, valued at ₹2,048 crores on a cash-free, debt-free basis, marks a significant milestone for Paytm as it continues to refine its focus on core payments and financial services distribution.
“One 97 Communications Limited (OCL), which owns the brand Paytm, India’s leading payments and financial services distribution company and the pioneer of QR and mobile payments, today 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 Zomato Limited,” the fintech major said in a release.
Under the terms of the agreement, Paytm will transfer its entertainment ticketing operations to Zomato through a two-step process: first, by moving the business to its 100% subsidiaries, Orbgen Technologies Pvt Limited (OTPL) and Wasteland Entertainment Pvt Ltd (WEPL), and second, by selling 100% stakes in these subsidiaries, which operate the TicketNew and Insider platforms, respectively. This transfer will include approximately 280 employees currently working in Paytm’s entertainment ticketing division.
The sale underscores Paytm’s strategic decision to concentrate on its core business areas, particularly in payments and financial services. In recent quarters, Paytm has expanded its offerings in insurance, equity broking, and wealth distribution, positioning itself as a leading player in financial services distribution. The company aims to leverage this sale to further strengthen its market presence in these sectors.
During the transition period of up to 12 months, Paytm users will still be able to purchase movie and event tickets through the Paytm app, as well as on the TicketNew and Insider platforms. This ensures a seamless experience for both users and merchant partners as the transition to Zomato ownership is completed.
Paytm’s entertainment ticketing business, which generated revenues of ₹297 crores (excluding intercompany eliminations) and an adjusted EBITDA of ₹29 crores in FY24, was built from the ground up, including the acquisitions of TicketNew and Insider between 2017 and 2018 for ₹268 crores.
The sale highlights Paytm’s success in creating and scaling businesses, while also demonstrating its commitment to long-term value creation for shareholders by focusing on its core areas of expertise. The transaction is expected to close within this quarter, subject to the fulfillment of all agreed-upon conditions.
