22 August 2024
One97 Communications Limited, the parent company of Paytm, has announced the sale of its entertainment ticketing business to food delivery giant Zomato for Rs 2,048 crore ($244.2 million). This sale includes services for booking movie, sports, and live event tickets. During a 12-month transition period, these services will continue to be available on the Paytm app.
This move represents a significant shift for Paytm as it refocuses on its core financial services and payments platform. The sale is a strategic realignment, allowing Paytm to reallocate resources and strengthen its position in the increasingly competitive fintech market. The decision to divest comes after a period of financial instability for Paytm, marked by declining sales and regulatory challenges.
Over the years, Paytm built its ticketing business through acquisitions, such as Insider.in and the Alibaba-owned TicketNew. Despite growth in this segment, it contributed only a small portion to Paytm's overall revenue. The company is now streamlining operations to better respond to declining revenues and increased competition.
Additionally, Paytm's payments business has faced pressure due to regulatory actions by the Reserve Bank of India (RBI), including a suspension of activities at Paytm Payments Bank and a shrinking market share in Unified Payments Interface (UPI) transactions. By selling non-core assets like the ticketing business, Paytm aims to concentrate on areas with greater growth potential. The sale to Zomato is expected to provide the company with much-needed capital, enabling it to focus on expanding its merchant base and improving its core financial services offerings.
One97 Communications Limited, the parent company of Paytm, has announced the sale of its entertainment ticketing business to food delivery giant Zomato for Rs 2,048 crore ($244.2 million). This sale includes services for booking movie, sports, and live event tickets. During a 12-month transition period, these services will continue to be available on the Paytm app.
This move represents a significant shift for Paytm as it refocuses on its core financial services and payments platform. The sale is a strategic realignment, allowing Paytm to reallocate resources and strengthen its position in the increasingly competitive fintech market. The decision to divest comes after a period of financial instability for Paytm, marked by declining sales and regulatory challenges.
Over the years, Paytm built its ticketing business through acquisitions, such as Insider.in and the Alibaba-owned TicketNew. Despite growth in this segment, it contributed only a small portion to Paytm's overall revenue. The company is now streamlining operations to better respond to declining revenues and increased competition.
Additionally, Paytm's payments business has faced pressure due to regulatory actions by the Reserve Bank of India (RBI), including a suspension of activities at Paytm Payments Bank and a shrinking market share in Unified Payments Interface (UPI) transactions. By selling non-core assets like the ticketing business, Paytm aims to concentrate on areas with greater growth potential. The sale to Zomato is expected to provide the company with much-needed capital, enabling it to focus on expanding its merchant base and improving its core financial services offerings.
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