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The parent company of Paytm, One 97 Communications Limited (OCL), has announced the sale of its entertainment ticketing business to Zomato for ₹2,048 crore.
NEW DELHI: The parent company of Paytm, One 97 Communications Limited (OCL), has announced the sale of its entertainment ticketing business to Zomato for ₹2,048 crore.
The all-cash deal underscores Paytm’s strategic shift towards strengthening its core operations in payments and financial services distribution.
The transaction includes the transfer of Paytm’s entertainment ticketing business, encompassing movies, sports, and event ticketing, to its 100% subsidiaries, Orbgen Technologies Pvt. Limited (OTPL) and Wasteland Entertainment Pvt. Limited (WEPL). Zomato will acquire these subsidiaries, which operate the TicketNew and Insider platforms, through a share purchase and subscription agreement (SPSA).
Approximately 280 employees from the entertainment ticketing division will also move to Zomato as part of the deal.
As detailed in the transaction, OCL will first transfer its entertainment ticketing business to OTPL and WEPL. Zomato will then infuse funds into these subsidiaries through a preferential allotment of shares, which will be used to pay the slump sale consideration to OCL.
Following this, Zomato will acquire OCL’s entire stake in OTPL and WEPL, resulting in both entities becoming wholly-owned subsidiaries of Zomato.
The transaction closure is subject to standard regulatory approvals and conditions, with completion expected within this quarter.
Paytm’s decision to divest this business aligns with its focus on expanding its core areas—payments, insurance, equity broking, and wealth distribution.
Paytm has grown its entertainment ticketing business from the ground up, acquiring TicketNew and Insider between 2017 and 2018 for a total of ₹268 crores.
By FY24, the business had reached ₹297 crores in revenue and ₹29 crores in adjusted EBITDA, marking a notable success in value creation.
Paytm’s spokesperson highlighted the strategic shift, noting, “This move allows us to continue focusing on long-term growth in our core areas and value creation for all stakeholders.”
The transaction was advised by Deloitte Touche Tohmatsu India LLP, with Morgan Stanley providing the fairness opinion and Luthra & Luthra serving as legal counsel.
The Zomato board approved the deal on August 21.
