Paytm to sell entertainment ticketing business to Zomato for Rs 2,048 cr

One 97 Communications Limited (OCL), which owns the brand Paytm, has entered into definitive agreements for the sale of its entertainment ticketing business that includes movies, sports and events (live performances) ticketing to Zomato Limited.

The deal, valued at Rs 2,048 crore is on a cash-free, debt-free basis.

As part of this agreement, OCL will transfer its entertainment ticketing business to Zomato by 1) Transfer of OCL’s entertainment ticketing business to it’s 100% subsidiaries, Orbgen Technologies Pvt Limited (OTPL) and Wasteland Entertainment Pvt Ltd (WEPL), and 2) Selling 100% stake in its subsidiaries OTPL and WEPL, which operate the TicketNew and Insider platforms, respectively to Zomato. The transfer will also include 280 existing employees from the entertainment ticketing business.

The transaction value is subject to cash and net working capital adjustments at closing. Transaction closure is subject to satisfaction of agreed conditions precedent.
During a transition period (up to 12 months), the movie and event tickets will continue to be available on the Paytm app, as well as on the TicketNew and Insider platforms, ensuring a smooth and uninterrupted experience for users and merchant partners.

Paytm spokesperson said, "We built the entertainment ticketing business by addressing the market needs of the time. Today, as it transitions to Zomato ownership, we thank every team member who contributed to building this business. It has been a privilege to grow this business with an incredible team. This move allows us to continue focusing on long-term growth in our core areas and value creation for all stakeholders."

The transaction is expected to close within this quarter, subject to the satisfactory completion of all closing conditions.