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Paytm, a major player in the Indian digital payment and financial services sector, is reportedly in advanced discussions with Zomato Ltd. to sell its movie and events ticketing division. As per sources familiar with the matter cited in a recent Bloomberg report, the negotiations between One97 Communications Ltd., the parent company of Paytm, and Zomato are progressing, although other potential buyers have also shown interest in the business. The talks, which are happening amid declining sales for Paytm, have not yet resulted in a final decision.
In response to its first-ever sales decline reported last month, Paytm, led by its billionaire founder-CEO Vijay Shekhar Sharma, announced plans to restructure its non-core assets and suggested potential job cuts. This strategic move comes after regulatory actions impacted Paytm Payments Bank Ltd., a significant aspect of Paytm’s operations. The company has had to form new partnerships with other lenders to navigate the regulatory challenges.
While specifics of Paytm’s movie and events ticketing business financials are not publicly disclosed, the broader marketing services segment, where it falls, recorded annual sales of 17.4 billion rupees ($208 million) in the fiscal year ending March 2024. A successful sale of this division would allow Paytm to focus on expanding its travel, deals, and cashback offerings, essential for growing its customer base and overall revenue.
Acquiring Paytm’s movie and events ticketing business could be a significant strategic move for Zomato, enabling it to enter a new and rapidly growing digital sector. Zomato has made notable acquisitions in the past, such as Uber Technologies Inc.’s India food unit in 2020, strengthening its position in the market. Neither Paytm nor Zomato have offered public comments on the ongoing discussions outside of standard business hours, according to the Bloomberg report.
India’s fast-evolving digital landscape continues to witness key players making strategic decisions to adapt to changing market dynamics. Stay tuned for more updates on this developing story on HeadlineFly.com.
