On 21 August, Zomato, the hyperlocal delivery and discovery platform, announced a significant Rs 2,048 crore (USD 244 million) acquisition of fintech firm Paytm’s entertainment and ticketing business. This move, one of the largest in India’s mobile commerce and entertainment sectors, is poised to have far-reaching implications for the entire mobile entertainment and ticketing industry.
To fully grasp the potential impact of this acquisition, it is crucial to consider Zomato’s evolution as a key player in India’s mobile commerce landscape. Launched in July 2008 as a restaurant discovery startup, Zomato made its first major pivot in 2015 by entering the food delivery space nationwide. Its second major shift occurred in April 2022, when it ventured into the burgeoning ‘quick commerce’ segment.
Over the years, Zomato has secured nearly USD 788 million in venture capital funding from investors like Info Edge, Sequoia Capital (now Peak XV Ventures), Temasek, and Tiger Global. Its major acquisitions include the US-based food platform Urbanspoon in 2014, Uber Eats’ India business in 2020, a minority stake in grocery listing and delivery platform Grofers in 2021, quick commerce upstart Blinkit in 2022, and now, Paytm’s entertainment vertical.
THE BUSINESS OPPORTUNITY
Zomato’s acquisition of Paytm’s entertainment and ticketing business, its second-largest following the Blinkit takeover, presents a strategic expansion opportunity for the company, which went public in July 2021.
According to media reports, Paytm’s entertainment and ticketing vertical reported a gross order value of Rs 2,000 crore in FY24 and over 10 million unique customers. For Zomato, this acquisition offers a fast track to acquiring a substantial user base in a vertical where it has had a limited presence.
This story is from the september 2024 edition of Voice and Data.
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This story is from the september 2024 edition of Voice and Data.
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