New Delhi, 23rd Aug 2024: Zomato’s board of directors has made a significant move by approving a share purchase and subscription agreement aimed at acquiring the entertainment ticketing business Paytm Insider from One 97 Communications, a parent platform of Paytm.
This acquisition involves two of One 97’s wholly owned subsidiaries Orbgen Technologies Private Limited (OTPL) and Wasteland Entertainment Private Limited (WEPL).
The transaction will occur through a slump sale, where One 97 Communications will transfer its movie ticketing operations to OTPL and its sports and events ticketing functions to WEPL. Following this transfer, Zomato will acquire all shares held by One 97 Communications in both OTPL and WEPL, thereby making them entirely owned subsidiaries of Zomato.
In addition to the share acquisition, Zomato plans to inject capital into OTPL and WEPL via a preferential allotment. This capital infusion will match the amount agreed upon for the slump sale and will be utilized to settle the payment to One 97 Communications.
The estimated costs associated with this acquisition are substantial, with OTPL valued at approximately Rs 1,264.6 crore and WEPL at around Rs 783.8 crore. The company has outlined a timeframe for completing the acquisition process, which is expected to take up to 90 days.
OTPL was established in India on November 23, 2007, and specializes in the listing and sale of movie tickets, along with offering related services. On the other hand, WEPL was incorporated on December 21, 2015, and focuses on the ticketing of events and similar service offerings. As of March 31, 2024, OTPL reported an audited turnover of Rs 13.14 crore, while WEPL achieved a significantly higher turnover of Rs 236.03 crore.
This strategic acquisition aligns with Zomato’s efforts to diversify its business portfolio and expand into the entertainment sector, potentially enhancing its market presence and customer engagement in the growing ticketing industry.