Paytm is facing financial problems and is discussing with Zomato to sell its ticketing business, focusing on other areas instead.
Paytm has encountered financial difficulties following regulatory actions by the RBI earlier this year, leading to a significant drop in its market share. As of June 14, the company's market cap stands at Rs 26,986 crore.
In response, Paytm is in advanced discussions with Zomato to sell its movie and events ticketing business, aiming to refocus on its travel, deals, and cashback segments, according to Bloomberg reports citing insiders.
If finalized, this deal would mark Zomato's second-largest acquisition after acquiring Blinkit (formerly Grofers) in 2021 for Rs 4,447 crore in an all-stock transaction. Zomato aims to expand beyond food delivery by diversifying into groceries and entertainment, responding to changing consumer needs.
Paytm, founded by billionaire Vijay Shekhar Sharma, has seen its shares fluctuate, initially declining below Rs 400 but recently rebounding above this mark after the revision of its price band to 10% from the previous 5%. On June 14, Paytm's shares closed at Rs 423.60.
The potential acquisition of Paytm's ticketing business underscores Zomato's aggressive expansion strategy and its aim to strengthen its position in the competitive online services market.
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