- Zomato is in talks to acquire Paytm’s movie and ticketing unit for up to $239.5M.
- The food delivery giant is also investing $36M in its quick commerce division, Blinkit.
- Paytm posted its first profitable year but faced a 20% Q4 revenue drop due to regulatory challenges.
A blockbuster deal in the making
Indian food delivery giant Zomato has confirmed ongoing discussions to acquire Paytm’s movie and ticketing unit.
The potential deal, valued between US$191.6 million and US$209.5 million, could reach up to US$239.5 million when outstanding receivables from cinema exhibitors are included. Zomato stated that the acquisition aligns its focus on its four key businesses.
In addition to the potential acquisition, Zomato is reportedly investing an additional US$36 million into its quick commerce division, Blinkit.
This investment would bring Zomato’s total investment in Blinkit to US$275 million since its acquisition in 2022.
Paytm’s rollercoaster ride
Despite Paytm recently posting its first full year of EBITDA profitability since going public in 2021, the company faced a 20% year-on-year decrease in Q4 revenue.
This decline is primarily attributed to regulatory challenges faced by its Paytm Payment Bank arm.
To read the original article: https://www.techinasia.com/zomato-confirms-talks-acquire-paytms-movie-ticketing-arm
