One 97 Communications Ltd (OCL), the parent of Paytm, is selling its entertainment ticketing business — that includes movies, sports and events (live performances) — to Zomato Ltd for ₹2,048 crore.

In a late evening regulatory filing on Wednesday, OCL said it will first transfer the entertainment ticketing business to its wholly owned subsidiaries, Orbgen Technologies Pvt Limited and Wasteland Entertainment Pvt Ltd.

It will subsequently sell 100 per cent stakes in these subsidiaries, which operate the TicketNew and Insider platforms, to Zomato.

Around 280 existing employees from the entertainment ticketing business will be transferred to Zomato.

The transaction value is subject to cash and net working capital adjustments at closing, while deal closure is subject to the satisfaction of agreed conditions.

According to OCL, the deal will sharpen its focus on core payments and financial services distribution.

``Paytm’s move to sell its entertainment ticketing business underscores its core focus on payments and financial services distribution,” OCL said.

“In recent quarters, the company has also expanded its offerings in insurance, equity broking and wealth distribution, with significant opportunity to cross-sell these services and grow its market presence as a leading financial services distribution player.’’

Movies and event tickets will be available on the Paytm app during transition period of up to 12 months.

It will also be available on the TicketNew and Insider platforms.

Zomato said in a separate regulatory filing that the acquisition is in line with the strategy of investing in its `going-out business’.

It expects the deal to be completed within 90 days from the execution date of the share purchase and subscription agreement with OCL and the two subsidiaries.

Paytm said it built the movie ticketing business on its own and acquired TicketNew and Insider for ₹268 crore from 2017 to 2018.
Additional investments were made to scale up the business.

The entertainment ticketing business posted revenues of ₹297 crore and adjusted EBITDA (earnings before interest, taxes, depreciation & amortisation) of ₹29 crore in 2023-24.

Paytm claimed that the deal will create value for its shareholders.

With a strong focus on long-term value creation, it expected revenue from its entertainment ticketing business will be substituted by expanding the core business areas of payments and financial service distribution.

“We built the entertainment ticketing business by addressing the market needs of the time. Today, as it transitions to Zomato ownership, we thank every team member who contributed to building this business,” a Paytm spokesperson said.

“This move allows us to continue focusing on long-term growth in our core areas and value creation for all stakeholders.’’