2024-06-16 15:48:47
Paytm and Zomato did not respond to requests for comment (Representational)
Paytm is in talks with Zomato to sell its movie and events ticketing business, according to people familiar with the matter, as the beleaguered fintech company carves a revival strategy amid weakening sales.
The discussions between Paytm, officially known as One97 Communications Ltd, and online food delivery firm Zomato are in advanced stages, though there are other suitors for the business, the people said, declining to be named as the matter is private. Talks are ongoing and no final decision has been made, the people said.
Paytm, run by billionaire founder-CEO Vijay Shekhar Sharma, last month reported its first sales decline on record and vowed to trim non-core assets. It also warned of job cuts, reflecting the fallout from regulatory action on Paytm Payments Bank Ltd. that’s curtailed much of the fintech’s business and forced it to forge new partnerships with lenders.
Paytm does not control the bank but relied on it for digital wallets and payments traffic before the central bank’s move earlier this year.
Paytm and Zomato did not respond to requests for comment outside of regular business hours.
Paytm does not disclose standalone numbers for its movie and events ticketing business. It reported annual sales of 17.4 billion rupees ($208 million) in the fiscal year through March 2024 in its marketing services business, which includes movie and events as well as credit card marketing and gift vouchers.
The sale, if successful, will allow Paytm to sharpen its focus on travel, deals, and cash backs – businesses that are important to broaden its merchant base and grow its own sales.
The purchase could help Zomato expand its digital business into a new high-growth area. In 2020, it acquired Uber Technologies Inc.’s India food unit.
(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)
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