Zomato confirms talks to acquire Paytm’s movie, ticketing arm

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Indian food delivery firm Zomato is in talks to buy Paytm‘s movie and ticketing unit, The Economic Times reported.

Zomato confirmed the discussion in a recent stock filing, clarifying that negotiations are still ongoing and no decisions have been finalized.

If a deal goes through, Paytm’s movie and event division could be valued between 16 billion rupees (US$191.6 million) and 17.5 billion rupees (US$209.5 million), according to a previous report. With outstanding receivables from cinema exhibitors included, this number could potentially reach US$239.5 million.

Zomato wrote in its filing that the discussions are “being undertaken with an intent to further strengthen our going-out business and is in line with our stated position of focusing only on our four key businesses currently.”

The food delivery firm is also reportedly investing an additional US$36 million into Blinkit, its quick commerce division. This would push Zomato’s total investment in Blinkit to US$275 million since its acquisition in 2022.

Meanwhile, Paytm had recently posted its first full year of EBITDA profitability since going public in 2021. However, its Q4 revenue decreased year on year by 20%, mainly due to regulatory woes faced by its Paytm Payment Bank arm.

See also: From bust to boom: Zomato turns the tide

Currency converted from Indian rupee to US dollar: US$1 = 83.52 rupees.