The online restaurant guide and food ordering service startup, Zomato, officially announced that there are some discussions ongoing between the company and financial services major Paytm regarding the acquisition of its movies and ticketing business. However, Zomato said it had not reached any decision as of now.
Zomato updated bourse on the developments to say the discussions would further strengthen its "Going-out" business segment, which is its strategy going forward only to its four core business verticals as of now.
While earlier reports had pegged the valuation of Paytm's movies and ticketing business at around Rs 1,500 crore in the deal, Zomato did not disclose deal details.
"We have been in discussions with Paytm for the above-mentioned transaction, but as on date, no binding decision has been taken at this stage that would warrant a Board approval and subsequent disclosure in accordance with applicable law," Zomato mentioned in its filing.
If consummated, this would be Zomato's second-biggest acquisition after it acquired Blinkit—a quick commerce platform in 2021—for Rs 4,447 crore as an all-stock transaction.
Separately, Zomato is putting another Rs 300 crore more into Blinkit, which basically means it strongly believes that opportunities and growth lie outside the core food delivery business.
Other than this, Zomato plans to invest Rs 100 crore in its events vertical, Zomato Entertainment, via which the company organises concerts, parties, and festivals for their customers, and even sells the tickets for the same.
Read also | Resilient Growth: India's Textile Exports Rise 9.6% Against Global Challenges
Read also | India Poised for $250 Billion Electronic Manufacturing Boom in Next Five Years
