Paytm is in talks with Zomato to sell its movie and events ticketing business, according to people familiar with the matter, as the beleaguered fintech company carves a revival strategy as sales weaken, Bloomberg reported.
The discussions are in advanced stages with no final decision made so far, the people told Bloomberg, adding that there are other suitors also for the business.
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Paytm, run by billionaire founder-CEO Vijay Shekhar Sharma, last month reported its first sales decline on record, and vowed to trim non-core assets, according to the report.
It also warned of job cuts from regulatory action on Paytm Payments Bank that curtailed much of the business and forced it to forge new partnerships with lenders, the report read.
Paytm does not control the bank but relied on it for digital wallets and payments traffic before the central bank’s move earlier this year.
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Paytm, which doesn’t disclose standalone numbers for its movie and events ticketing business, reported total annual sales of ₹1,740 crore in the financial year 2023-24 in its marketing services business, which includes movie and events as well as credit card marketing and gift vouchers, according to Bloomberg.
The sale, if successful, will allow Paytm to sharpen its focus on travel, deals and cash backs – businesses that are important to broaden its merchant base and grow its own sales, according to the report.
The purchase could help Zomato to expand its digital business into a new high-growth area, Bloomberg wrote.
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