Zomato: Food delivery company Zomato has bought the entertainment ticket business of fintech company Paytm. This deal between the two companies has been done for Rs 2048 crore. Paytm’s parent company One 97 Communications has informed about this decision in an exchange filing on Wednesday. The company has said that it wants to focus completely on its payment and financial services business.
Vijay Shekhar Sharma wrote a letter to the shareholders
After the announcement of this deal with Zomato, Paytm founder Vijay Shekhar Sharma wrote a letter to shareholders saying that now we will focus on creating a profitable model by focusing on our core business. He said that we have prepared a long term plan for Paytm. We have faced many challenges in the past few times. Now we have recovered from those shocks and are preparing to move forward.
280 employees will also be transferred to Zomato
One 97 Communications has said in an exchange filing that it will sell its 100% stake to Zomato. This deal has been done on a cash free and debt free model. Apart from this, 280 employees working in Paytm’s entertainment ticket business team will also be transferred to Zomato. However, movie tickets, sports and event tickets will continue to be available on the Paytm app for the next 12 months. Paytm started this business by buying TicketNew and Insider for Rs 268 crore.
Update: We’re excited to share that we’ve entered into agreements to sell our entertainment ticketing business, including movies, sports, and events, to Zomato for ₹2,048 cr. This move allows us to focus more on core payments & financial services. We built movie ticketing from… pic.twitter.com/TRnBUiIlTW
— Paytm (@Paytm) August 21, 2024
Lessons we learned from the ban on Paytm Payments Bank
Vijay Shekhar Sharma said that the last financial year was very difficult for us after the RBI ban on Paytm Payments Bank. But, we learned many lessons from it. Now increasing cash flow is our priority in this financial year. He said that the company will now also increase the use of AI.
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