Paytm India’s biggest digital payments service provider has said it is divesting its entertainment ticketing vertical to Zomato, a food delivery platform. The stock and cash deal is expected to be at Rs 2,048 crore and will involve the acquisition of Paytm’s subsidiaries Orbgen Technologies and Wasteland Entertainment that respectively own TicketNew and Insider. Paytm has lately been exiting some non-core verticals to concentrate more on its financial services niche, such as mobile payments.
Thus, the acquisition of edible ticketing companies by Zomata is expected to give it a better shot in the entertainment ticketing market as well as be in a position to offer a variety of services to its customers. On the other hand, the formation of Paytm will mean that the Open offers it to focus on its core competencies and foster growth of its financial services segment.
