Zomato, a leading player in India's food delivery industry, has announced the acquisition of Paytm's entertainment and ticketing division for Rs 2,048 crore. This strategic move aims to enhance Zomato's footprint in the 'going-out' segment, a significant expansion beyond its traditional focus on food delivery. The boards of both Zomato and Paytm approved the all-cash transaction on August 21, according to a joint statement issued by the companies.


Although Paytm will continue offering ticketing and entertainment services on its platform for the next year, customers will soon be encouraged to switch to Zomato's new app, 'District.'


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This app, set to launch in the coming weeks, will centralise various lifestyle services, including dining, movies, live events, and more, under one platform. 


Beyond Food Delivery


This acquisition signals Zomato's ambition to diversify its services as growth in the food delivery sector slows. The company has previously highlighted its interest in expanding into quick commerce and now sees potential in movie ticketing and events as a way to boost revenue.


However, as reported by Moneycontrol, initial projections by analysts suggest that the addition of Paytm's ticketing business may only modestly impact Zomato’s overall revenue, contributing an estimated 2.5 per cent increase.


Approximately 280 employees from Paytm's ticketing team will transition to Zomato as part of the deal. Goyal acknowledged the challenges of integrating a new team, noting that this acquisition is distinct from Zomato’s previous acquisitions, such as Uber Eats and Blinkit, where the company had prior relationships with the teams involved.


What Does Deepinder Goyal Have To Say?


Deepinder Goyal, CEO of Zomato, emphasised that this is not entirely new territory for the company, noting that Zomato has been active in the ticketing space for over a year. "This is not really an absolutely new business for us as we have already been doing ticketing as a business for more than a year now and have been eyeing building more use cases for that business. Just to recap, our going-out business (which includes dining-out and event ticketing) did Rs 3,225 crore of GOV (gross order value) in FY24 growing at 136 per cent YoY," Goyal said.


Meanwhile, Paytm's entertainment ticketing division, which includes businesses acquired from Insider and TicketNew, generated Rs 297 crore in revenue and Rs 29 crore in adjusted EBITDA in FY24. The division facilitated the sale of 78 million tickets to over 10 million customers, with a GOV of over Rs 2,000 crore, growing 29 per cent year-on-year.


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Industry experts believe that Zomato could enhance its new entertainment and ticketing offerings by integrating them with its existing services. The introduction of a loyalty program and cross-selling opportunities could help Zomato drive higher customer engagement and revenue.


Additionally, Zomato's focus on improving the discoverability of entertainment options could provide a more comprehensive user experience, encouraging customers to explore more offerings beyond just booking tickets.