Zomato has successfully acquired Paytm's entertainment and ticketing business
 August 28 : Zomato, the food delivery giant, has finalized the acquisition of Paytm subsidiaries WEPL and OTPL, which operate in the entertainment ticketing sector, according to the company's filing with the exchanges
On August 21, Zomato, led by Deepinder Goyal, signed definitive agreements to acquire Paytm's entertainment arms. Paytm, based in Noida, also confirmed the transaction in its stock exchange filing on the same day.
The deal, valued at Rs 2,048 crores on a cash-free, debt-free basis, highlights the significant value Paytm has created through its entertainment ticketing business, offering choice and convenience to millions of Indians through its services and scale, as mentioned in a company release filed with exchanges.
Under this agreement, OCL will transfer its entertainment ticketing business to Zomato by moving OCL's ticketing operations to its wholly-owned subsidiaries, Orbgen Technologies Pvt Limited (OTPL) and Wasteland Entertainment Pvt Ltd (WEPL). Zomato will then acquire a 100 percent stake in these subsidiaries, which operate the TicketNew and Insider platforms, respectively.
Approximately 280 current employees from the entertainment ticketing business will join Zomato as part of the acquisition, according to Paytm.
Paytm stated that the company aims to focus more on the payments and financial services distribution sector.
During the transition period of up to 12 months, movie and event tickets will continue to be available on the Paytm app, as well as on the TicketNew and Insider platforms, ensuring an uninterrupted experience for users and merchant partners.
Paytm had initially built its movie ticketing business from scratch and later acquired TicketNew and Insider for a combined total of Rs 268 crores between 2017 and 2018, with further investments made to scale up the operations.
Following the announcement on Wednesday, Zomato's stocks opened strong at Rs 256.20. The company has delivered a 60 percent return to its shareholders over the past six months.