Zomato news update
Food delivery giant Zomato is reportedly in advanced discussions to acquire Paytm’s movie ticketing and events business for a potential valuation of Rs 1,500 crore, according to The Economic Times. This move aligns with Zomato’s strategy to expand its ‘going out’ offerings.
Paisa Journal could not independently verify the development.
Zomato’s interest in Paytm’s events and movie ticketing business fits strategically with its broader aim to capture consumer demand across various categories, including food, grocery, and entertainment, The Economic Times added.
If finalized, this acquisition would be Zomato’s second-largest purchase after acquiring quick commerce platform Blinkit (formerly Grofers) in a 2022 deal valued at Rs 4,447 crore.
Zomato plans to infuse Rs 300 crore into its quick commerce subsidiary, Blinkit, as competition intensifies in the segment. This latest investment brings Zomato’s total investment in Blinkit to Rs 2,300 crore, according to filings from Tofler.
Following its Q4 FY24 results, Zomato announced Blinkit’s plan to expand its store footprint to 1,000 by the end of FY25, up from 526 stores as of March 31, 2024, with 75 stores added in Q4.
Paytm does not disclose standalone numbers for its movie and events ticketing business. However, it reported annual sales of Rs 1,740 crore ($208 million) in the fiscal year through March 2024 for its marketing services business, which includes movie and events ticketing, credit card marketing, and gift vouchers, according to Bloomberg.
One 97 Communications Ltd (Paytm), the parent company of Paytm, reported an increase in consolidated net loss to Rs 549.60 crore in the March quarter from Rs 219.80 crore in the December quarter and Rs 168.90 crore in the same quarter last year. Revenue from operations fell 3 percent year-on-year to Rs 2,267.10 crore from Rs 2,334.50 crore in the same quarter last year.
Paytm attributed its March quarter results to temporary disruption due to the UPI transition and permanent disruption because of the PPBL embargo. It has impaired the carrying value of its investment in PPBL.
Paytm expects Q1 FY2025 revenue of Rs 1,500-Rs 1,600 crore and EBITDA before ESOP of minus Rs 500-600 crore. The company is confident of seeing meaningful improvement starting from Q2 FY2025, based on restarting certain paused products and achieving steady growth in operating metrics.
