Paytm further noted that the company’s focus will be on payment and financial services, along with digital goods commerce, which are designed to help its merchants scale their businesses.
Food delivery giant Zomato and financial technology (fintech) major Paytm have officially confirmed that they are in talks for a potential acquisition of Paytm’s movie and event ticketing business. Both companies disclosed this in regulatory filings on Monday.
“We acknowledge that we are in discussions with Paytm for the aforementioned transaction; however, no binding decision has been taken at this stage that would warrant board approval and subsequent disclosure in accordance with applicable law,” Zomato stated.
The discussion, Zomato added, is being undertaken with the intent to further strengthen the company’s going-out business and aligns with its “stated position of focusing only on the four key businesses currently”.
Although neither Zomato nor Paytm disclosed the valuation of the transaction, the potential deal is estimated to be in the range of Rs 1,600 crore to Rs 2,000 crore. This would be Zomato’s second-largest purchase since acquiring Blinkit in 2022 for $569 million in an all-stock deal, Business Standard reported earlier.
Paytm further noted that the company’s focus will be on payment and financial services, along with digital goods commerce, which are designed to help its merchants scale their businesses.
“However, any discussions currently underway are preliminary and do not involve any binding agreements that require approval or disclosure under Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, or other applicable laws. As such, any information pertaining to these discussions should be considered speculative at this time,” the statement read.
This development comes at a time when the Vijay Shekhar Sharma-led firm is trying to regain lost ground by doubling down on its focus on payments and adopting a distribution-first approach for financial services. Consequently, the company is concentrating on larger businesses that can grow and become profitable at scale.
The deal is in line with Zomato’s strategy to ramp up investments in its going-out business. The company announced last week that it will invest Rs 100 crore in Zomato Entertainment, which includes its live events and ticketing business.
First Published: Jun 17 2024 | 5:40 PM IST