Solidifying its plan to expand into the ‘going-out’ segment, Zomato has geared up to acquire Paytm’s entertainment and ticketing business for Rs 2,048 crore. Paytm, on the other hand, will focus on its core financial services. Both companies’ boards approved the cash deal on August 21.

For the next 12 months, Paytm will keep offering ticketing and entertainment options on its app, but users will be encouraged to switch to Zomato’s new ‘District’ app, which will consolidate Zomato’s dining and ticketing services.

The app, launched earlier this month, will soon be available to the public, marking Zomato’s expansion into a broader range of lifestyle services. This acquisition will also see around 280 Paytm employees join Zomato.

Zomato’s CEO, Deepinder Goyal, said, “The main driver of success is going to be cultural integration of the new team that will join us – which means assimilation of the new team into our flattish culture.”

The acquisition is expected to enhance Zomato’s movie ticketing and events business by adding a loyalty program and creating cross-selling opportunities with its food delivery services. However, experts suggest that this addition might initially contribute only a small percentage to Zomato’s overall revenue.

Paytm’s entertainment ticketing business, which generated Rs 297 crore in revenue and Rs 29 crore in Adjusted EBITDA in FY24, was built from scratch and included acquisitions like Insider and TicketNew. This business saw a gross order value of over Rs 2,000 crore, with 78 million tickets sold to over 10 million customers.

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According to Paytm’s statement, the transaction is expected to generate significant profits, strengthen its balance sheet, and allow a stronger focus on its core business areas.