Is Paytm thinking of selling its movie ticketing business to Zomato?

If the deal is successful, Paytm can focus more on travel, cash backs, and deals to broaden its merchant base and lead toward more sales.

Since the last few months, Paytm has been in the headlines for more than one reason – good and bad. Amidst the many hurdles the app has faced, it did not receive the success and growth the team aimed for. The Indian multinational financial technology company specializing in digital payments and financial services based in Noida, India, to get back on track and to focus more on cash backs, travels, and deals to broaden its merchant base and lead toward more sales is now said to have cracked a deal with Zomato.

Paytm and Zomato join hands?

It is said that Paytm is in talks with Zomato to sell its movie and events ticketing business. The FinTech company looks forward to carving its niche again through a revival strategy, as sales have only shown a decline for quite some time, as reported by Bloomberg. They are in discussions already, but no final decision has been made yet, as Bloomberg reported that there are other suitors as well.

Paytm’s founder reported a sales decline.

CEO and founder Vijay Shekhar Sharma of Paytm reported a decline in sales last month and vowed to trim non-core assets, as per a report. It also warned of job cuts from regulatory action on Paytm Payments Bank that curtailed much business and forced it to have new partnerships with lenders. Paytm doesn’t control the bank but relied on it for digital wallets and payment traffic before the move made by the central bank earlier this year.

As per Bloomberg, Paytm reported total annual sales of ₹1,740 crore in the 2023-2024 financial year through its marketing service business, including movie and events, credit card marketing, and gift vouchers. If the deal is successful, Paytm will be able to focus more on deals, cashback, and travel, while Zomato will be able to expand its digital business.