Zomato buys Paytm's leisure ticket business for $244 million | TechCrunch – Techcrunch
Zomato, the Indian meals birth extensive, has got the leisure ticketing business of financial providers and products firm Paytm for $244.1 million, signaling a strategic dawdle to increase its “going out” offerings.
The acquisition, amongst essentially the most appealing M&A deals amongst new-age Indian tech firms, includes Paytm’s ticketing providers and products for motion photos, sports actions, and events. As allotment of the deal, Paytm’s flagship app will proceed to host these offerings for up to Twelve months, Paytm said in a stock alternate submitting.
The acquisition coincides with a outstanding efficiency in $27.3 billion Zomato’s stock market label, with shares soaring over 100% this Twelve months because the meals birth extensive’s rapid commerce business makes deeper inroads in India. Brokerage firm UBS said this week that it now values Blinkit, Zomato’s rapid commerce provider, at $15.4 billion, earlier than the Noida headquartered firm’s core meals birth business.
The acquisition additionally aligns with Zomato’s broader diagram to diversify its providers and products, Monetary institution of America analysts said. The dawdle would possibly maybe well vastly bolster Zomato’s ambitions to change into a one-dwell destination for dining and leisure choices, they wrote in a imprint.
“We imagine that Zomato has been searching for to re-blueprint its fourth biz pillar from ‘dining-out’ earlier to comprise ticketed events, meals fairs devour Zomaland and so forth,” the analysts wrote.
In the meantime, Paytm has been refocusing its efforts on its core fintech operations amid elevated regulatory scrutiny. The firm’s ticketing division, which turned into as soon as built by the acquisitions of Insider.in and TicketNew, contributed about 9% to Paytm’s total revenues within the latest quarter. Paytm got Insider.in and TicketNew for a sum of about $32 million.
“Paytm’s dawdle to sell its leisure ticketing business underscores its core have faith payments and financial providers and products distribution,” Paytm said in a stock alternate submitting.
