One97 Communications, the parent company of Paytm has invested $8.95 Mn (approx Rs 61 Cr) into its wholly subsidiary Paytm Entertainment, as per by more than 50% as per company’s filings with Ministry of Corporate Affairs.
Paytm Entertainment, the entertainment arm of Paytm deals in ticket booking for movies and other channels has increased its online penetration in India by more than 50%, as claimed by the company.
It is interesting to note that Paytm Entertainment has collaboration with SPI Cinemas which is the owner of landmark companies such as Sathyam Cinemas, Le Rêve, The Cinema, in Chennai, Hyderabad, and Mumbai.
The digital arm of Paytm had entred ticketing segment back in March 2016 in partnership with PVR and today it has its business operations running across 660 cities.
Over the past few years, Paytm has been working in different segments simultaneously to push its market penetration, and its entertainment venture is one such segment that has shown significant growth.
Paytm Entertainment which is largely present in tier 2 cities and beyond competes directly with BookMyshow among other players.
Moreover, a recent report by the Confederation of Indian Industry (CII) and the Boston Consulting Group (BCG), Indian media industry is expected to grow by double its size to $123 Bn by 2022, recording 11-12% CAGR between 2016 and 2022.