Zomato Acquires Paytm Insider for ₹2,048 Crore; Launches New App 'District'

30 Aug 2024 , 11:00 AM

Zomato finalized the acquisition of Paytm’s entertainment ticketing business, Paytm Insider, as reported in regulatory filings on Wednesday.

The acquisition, valued at approximately ₹2,048 Crore, is part of Zomato’s strategy to expand its going-out business and introduce new services.

Zomato acquired Paytm’s movie ticketing arm, Orbgen Technologies Pvt Ltd, for ₹1,264.6 Crore, and its events ticketing division, Wasteland Entertainment Pvt Ltd, for ₹783.8 Crore. The newly acquired business will be launched as a separate app called “District” in the coming weeks.

“District” marks Zomato’s third major venture after its food delivery service and Blinkit, targeting the largely untapped live events and ticketing market.

At the time of writing on August 30, 2024 at 10:56 am, Zomato’s stock was trading at ₹253.85, marking a 0.60% gain on the NSE. Zomato has witnessed a 154% gain since the beginning of the year, and 103% gain since the beginning of the year.

Paytm expects to generate significant profits from the transaction, with the proceeds strengthening its balance sheet for future growth.

With this acquisition, Zomato aims to become the second-largest entertainment ticketing platform in India, trailing only Bookmyshow, which holds around 75% of the market. Approximately 280 employees from Paytm will transition to Zomato as part of the deal.

A transition services agreement allows the ticketing business to continue operating on the Paytm app for up to 12 months, ensuring a smooth handover.