Food delivery giant Zomato on June 16 clarified through a communication to the exchanges that it is in discussion to acquire Paytm's movie ticketing and events business.
The clarification came after media reports said negotiations over a Rs 1,500-crore deal between One97 Communications Ltd, the parent company of Paytm, and Zomato were in advanced stages.
"We acknowledge that we are in discussions with Paytm for the transaction, however, no binding decision has been taken at this stage that would warrant a Board approval and subsequent disclosure in accordance with applicable law," Zomato said in the statement.
This strategic move aligns with Zomato's plan to expand its 'going out' offerings. "The discussion is being undertaken with an intent to further strengthen our going-out business and is in line with our stated position of focusing only on our four key businesses," the company said.
Zomato's interest in Paytm’s events and movie ticketing business is a strategic fit, complementing its broader aim to capture consumer demand across various categories, including food, grocery, and entertainment.
A successful sale would enable Paytm to concentrate on travel, deals, and cashback—sectors crucial for expanding its merchant base and boosting overall sales.
Also Read | Blinkit to receive Rs 300 crore from parent company Zomato
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
