Zomato Acquires Paytm's Entertainment Ticketing Business
In a recent development, Zomato has approved the acquisition of Paytm’s entertainment and ticketing business for ₹2,048 crore in a cash deal. This move marks Zomato’s expansion into the broader lifestyle services sector, including dining, movies, sports ticketing, live performances, shopping, and staycations. Meanwhile, Paytm aims to refocus on its core financial services.
Zomato’s shares rose nearly 3% to ₹267, with a market capitalization of ₹2.3 lakh crore. The company plans to grow its “going-out” segment to ₹10,000 crore by FY26. JM Financial has set a target price of ₹300, while Jefferies suggests a revised target of ₹335, indicating a potential 30% gain. The acquisition positions Zomato as the second-largest entertainment ticketing platform in India, behind BookMyShow.
Paytm’s shares surged nearly 5.5% to ₹604.45, with a market capitalization of ₹38,500 crore. The sale will allow Paytm to focus more on its core business areas. Motilal Oswal Financial Services has a ‘neutral’ rating with a target price of ₹550, whereas Emkay Global has a ‘reduce’ rating with a target price of ₹375. StoxBox forecasts a target price of ₹615 for Paytm, reflecting a cautious yet optimistic outlook.
The acquisition is set to enhance Zomato’s position in the lifestyle services market. With the introduction of the new app ‘District,‘ Zomato plans to consolidate various services under one platform. The company’s past performance and lack of significant competition in the ‘going-out’ segment suggest strong potential for growth.
For Paytm, the divestment allows a concentrated focus on its financial services and cashback offers. The move is expected to provide a financial boost and enable better shareholder value. However, some analysts believe the immediate net value addition might be less significant than the stock price reaction suggests.
The Ministry of Youth Affairs and Sports declared the National Sports Awards 2025 on August…
India is rapidly emerging as a major semiconductor manufacturing and packaging hub. Under the Semicon…
Indian-origin astronomer, Dr. Rohan Naidu, discovered a unique cosmic object that is known as "Black…
Indian chess players Vignesh Vermula and Saranya Devi have won gold medals in the Open…
India has launched its first-ever Guide to Grasslands and Other Open Natural Ecosystems (ONEs) at…
Asia’s first ever desert night safari set to be built in the State of the…