After the announcement that the fintech behemoth is selling its ticketing and entertainment division to food delivery app Zomato for ₹2,048 crore, Paytm’s share price increased by more than 5%. Paytm’s stock surged to ₹604.45, while Zomato’s shares increased by 2.71% to ₹267.00 each on the BSE. The parent company of Paytm, One 97 Communications, entered into final agreements to sell Zomato its entertainment ticketing division, which includes movie, sports, and event ticketing, for ₹2,048 crore.
During a transition period over the next 12 months, Paytm’s movie and event tickets will remain available on its app. After that, users will be redirected to Zomato’s upcoming app specifically for the “going-out” segment.
After the deal, Emkay Global Financial Services stated, “Zomato’s management has estimated that going-out GOV will exceed ₹10,000 crore in FY26, following the acquisition. The management projects that the going-out business will operate on an adjusted EBITDA basis close to break-even, with the potential to generate 4-5% adjusted EBITDAM as a percentage of GOV over the medium-to-long term. Going out will likely result in additional value over time, as demonstrated by management’s solid track record of execution.”
“In our view, the agreement would strengthen Paytm’s cash and cash equivalents, which it may utilize to expand its rewards and cash-back program, aiming to boost its declining payment business following the RBI action. Although future earnings would suffer, the net one-time gains adjusted for the earnings outgo would lessen the net loss in FY25E,” the statement continued.
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