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Food delivery giant Zomato and fintech major Paytm have officially confirmed they are in talks about Zomato potentially acquiring Paytm’s movie and event ticketing business. Both companies disclosed this in regulatory filings on Monday.
“We acknowledge that we are in discussions with Paytm for the aforementioned transaction; however, no binding decision has been taken at this stage that would warrant board approval and subsequent disclosure in accordance with applicable law,” Zomato stated. The discussion, Zomato added, aims to further strengthen its going-out business and aligns with its focus on four key business areas.
Neither Zomato nor Paytm disclosed the transaction’s valuation, but estimates place it between Rs 1,600 crore to Rs 2,000 crore. This potential deal would be Zomato’s second-largest acquisition since it bought Blinkit in 2022 for $569 million in an all-stock deal, according to Business Standard.
Paytm also confirmed the ongoing discussions. “The company routinely explores various strategic opportunities aimed at enhancing shareholder value. The potential transfer of Paytm’s entertainment business, a component of our marketing services, is one opportunity under consideration,” the fintech major said in a corporate filing.
Paytm emphasized its focus on payment and financial services, along with digital goods commerce, to help its merchants scale their businesses. “However, any discussions currently underway are preliminary and do not involve any binding agreements that require approval or disclosure under Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, or other applicable laws. As such, any information pertaining to these discussions should be considered speculative at this time,” the statement read.
This development comes as the Vijay Shekhar Sharma-led firm attempts to regain lost ground by doubling down on its focus on payments and adopting a distribution-first approach for financial services. Consequently, the company is concentrating on larger businesses that can grow and become profitable at scale.
The deal aligns with Zomato’s strategy to ramp up investments in its going-out business. Last week, the company announced it would invest Rs 100 crore in Zomato Entertainment, which includes its live events and ticketing business.
This move indicates a significant shift in India’s stock market dynamics, highlighting how major companies like Zomato and Paytm are maneuvering to strengthen their core businesses and enhance shareholder value.
