Paytm in Discussions to Sell Movie Ticketing Business to Zomato

Paytm is discussing with Zomato about selling its movie and events ticketing business, as the struggling fintech company plans a comeback strategy due to declining sales.

The talks between Paytm, also known as One97 Communications Ltd, and online food delivery company Zomato are at a progressed phase, with other potential buyers interested in the business, according to sources who spoke on condition of anonymity due to confidentiality. Conversations are still happening and a definitive choice has not been reached, sources mentioned.

Last month, billionaire founder-CEO Vijay Shekhar Sharma's company Paytm experienced its first ever decrease in sales and announced plans to reduce non-essential assets. It also indicated the possibility of reducing jobs, as a result of regulatory measures taken against Paytm Payments Bank Ltd., which have restricted its operations and necessitated forming alliances with other banks.

Paytm doesn't regulate the bank but depends on it for digital wallets and payments traffic, as it did before the central bank's recent decision.

Paytm and Zomato did not provide comments after hours despite requests.

Paytm does not provide separate figures for its movie and events ticketing division. It posted yearly revenue of 17.4 billion rupees (208 million USD) in the fiscal year ending March 2024 in its marketing services sector, encompassing movie and events marketing, credit card promotions, and gift voucher distribution.

If the sale goes well, Paytm will have the opportunity to focus on its travel, deals, and cash back services, which are essential for growing its customer base and boosting its revenue.

The purchase could help Zomato expand its online business into a new, rapidly growing area. It acquired Uber Technologies Inc.'s food branch in India in the year 2020.