-By ArdorComm News Network
August 31, 2024
Zomato has successfully completed the acquisition of Paytm subsidiaries Wasteland Entertainment Pvt Ltd (WEPL) and Orbgen Technologies Pvt Limited (OTPL) for ₹2,048 crores, marking its entry into the entertainment ticketing business. This strategic move aims to expand Zomato’s reach beyond food delivery into the entertainment sector.
The acquisition, finalized on August 21, was confirmed through official filings by both companies. The deal, valued on a cash-free, debt-free basis, highlights the value Paytm has created in the entertainment ticketing space, with its platforms TicketNew and Insider offering convenience to millions of users.
As part of the agreement, Zomato will acquire a 100 percent stake in WEPL and OTPL, bringing approximately 280 employees from Paytm’s entertainment ticketing division under its wing. During a 12-month transition period, movie and event tickets will continue to be available on the Paytm app and the TicketNew and Insider platforms, ensuring uninterrupted service for users.
Paytm, which had invested ₹268 crores to acquire TicketNew and Insider between 2017 and 2018, plans to refocus on its core payments and financial services business. Despite this divestment, the entertainment ticketing segment remains an important milestone in Paytm’s journey.
Following the announcement, Zomato’s stock opened in green at ₹256.20, reflecting investor confidence in the company’s expanded business strategy. Over the past six months, Zomato has delivered a 60 percent return to its shareholders, underscoring the market’s positive outlook on the company’s growth prospects.
Source: Hindustan Times