Sunday, July 21, 2024
HomeNewsFinancePaytm (the parent company of One97 Communications Ltd.) in Advanced Talks with...

Paytm (the parent company of One97 Communications Ltd.) in Advanced Talks with Zomato to Sell Movie and Ticketing Business

Paytm, the parent company of One97 Communications Ltd., is reportedly in advanced discussions with Zomato Ltd. to divest its movie and events ticketing division, sources familiar with the matter revealed to Bloomberg.

While negotiations are progressing, other interested parties are also eyeing the business, sources said on condition of anonymity due to the confidential nature of the talks. No final decision has been reached yet.

Facing its first-ever sales decline recently, led by founder-CEO Vijay Shekhar Sharma, announced plans to streamline non-core assets, possibly including job cuts. Regulatory actions against Paytm Payments Bank Ltd., a key part of its operations, have necessitated new partnerships with other financial institutions.

Although it doesn’t disclose specific figures for its movie and events ticketing segment, its broader marketing services, which include this business along with credit card marketing and gift vouchers, recorded annual sales of 17.4 billion rupees ($208 million) for the fiscal year ending March 2024.

None of the companies provided comments outside regular business hours when contacted by Bloomberg. For Paytm, focusing on travel, deals, and cashback sectors post-sale could enhance merchant base expansion and overall sales growth.

For Zomato, acquiring Paytm’s ticketing business represents a potential entry into a burgeoning digital sector. Zomato has previously bolstered its market position through strategic acquisitions, including Uber Technologies Inc.’s India food unit in 2020.

(With inputs from Bloomberg)

Share your news, articles, deals, columns, or press releases with us! Click the link to submit and join our platform today.



Please enter your comment!
Please enter your name here

Most Popular

Recent Comments