Clarifying through a communication to the exchanges, Food delivery giant Zomato has stated that it is in discussion to acquire Paytm's movie ticketing and events business. This clarification has surfaced after media reports stated that the negotiations over INR 1,500-crore deal between One97 Communications Ltd, the parent company of Paytm, and Zomato were in its final stages.
Zomato in the statement said, “We acknowledge that we are in discussions with Paytm for the transaction, however, no binding decision has been taken at this stage that would warrant a Board approval and subsequent disclosure in accordance with applicable law”.
This strategic move will align Zomato's plan to expand its 'going out' offerings. Zomato has made a statement, "The discussion is 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."
Furthermore, complementing its broader aim to capture consumer demand across various categories, including food, grocery, and entertainment, Zomato's interest in Paytm’s events and movie ticketing business is a strategic fit.
And on the other hand, a successful sale would enable Paytm to concentrate on travel, deals, and cashback, wherein, these sectors are crucial for expanding its merchant base while boosting overall sales at the same time.
