Leading food delivery service Zomato has acknowledged it is weighing up the purchase of Paytm's movies and live events segment as it seeks to diversify beyond meals.
In a regulatory statement, Zomato noted it is engaged in preliminary negotiations with digital payments trailblazer Paytm over a potential transaction, though no binding agreement has been finalized. The discussions aim to further develop Zomato's emerging entertainment offerings and align with its strategy of concentrating on four core activity spaces.
While no details were disclosed about the scope or value of a possible deal, acquiring Paytm's cinema and ticketing operations would grant Zomato access to an established platform in the growing online entertainment reservations market. Paytm is a pioneer in India's digital transition and its event booking services reach a huge audience nationwide.
Incorporating such resources could help Zomato tap new revenue streams and capitalize on evolving customer interests, leveraging its expertise in the customer experience domain. The company reiterated the dialogue is part of its objective to focus exclusively on four key businesses currently.
With legions of active users accustomed to its app for convenient meal delivery, Zomato is well-placed to roll out complementary services. While the talks are in early stages, a successful deal may see it expand beyond food to become a one-stop digital lifestyle assistant.
