Zomato Buys Paytm's Ticketing and Entertainment Business | Vantage with Palki Sharma

Firstpost

23 Aug 202407:05

Summary

TLDRZomato, India's food delivery giant, is acquiring PTM Insider, a ticketing platform for entertainment and sports events, for approximately $238 million. This move is part of Zomato's strategy to diversify beyond home delivery, with the launch of their new 'District' app consolidating outdoor activities. PTM, on the other hand, is refocusing on its core finance business following regulatory issues. The acquisition is seen positively by shareholders and aligns with market predictions that quick commerce and ticketing services are the next growth areas for Zomato.

Takeaways

📢 Zomato, a food delivery business in India, is acquiring PTM Insider, the entertainment ticketing app of PTM, for approximately 2,000 CR Rupees ($238 million).
📲 Zomato is launching a new mobile application called 'District' to consolidate its outdoor businesses, including dining out, movie tickets, and sports tickets.
🔄 PTM Insider users can still find ticketing options on the PTM app for the next 12 months before it migrates to Zomato's new app.
🏦 PTM is likely selling its ticketing business to focus on its core finance business, especially after facing regulatory issues earlier this year.
📈 Market reaction to the deal is positive, with Zomato shares up 2% and PTM shares up 0.3%, indicating shareholder approval.
🍽 Zomato's last quarter revenue was 4,200 CR rupees with a profit of 253 crores, showing a significant increase compared to the previous quarter.
🚀 Zomato's Quick Commerce segment grew by 222%, outpacing the 10% growth in its food delivery business, suggesting a shift in focus towards Quick Commerce.
🛒 Zomato plans to add 1,000 new Quick Commerce warehouses by the end of the financial year, investing nearly 300 CR rupees in this segment.
🎟️ Zomato aims to integrate its food delivery services with live events, such as sports and movie theaters, opening up new business opportunities.
🎤 Zomato is organizing a concert in Mumbai featuring Dua Lipa on November 30th, which is strategically timed after the acquisition announcement to boost ticketing traffic.
🌐 The dominance of BookMyShow and PTM in the online ticketing market has raised concerns about unfair charges and a lack of competition.

Q & A

What is the recent business deal between Zomato and PTM Insider?
-Zomato is acquiring PTM Insider's ticketing business, which includes movie, concert, and sports tickets, for around 2,000 CR Rupees, equivalent to $238 million.
What is Zomato's strategy behind the acquisition of PTM Insider's ticketing business?
-Zomato is diversifying its business model. They have unveiled a new mobile application called District, which will consolidate Zomato's outdoor business, including the newly acquired ticketing services.
How will PTM Insider's ticketing business transition post-acquisition?
-For the next 12 months, users can still find ticketing options on PTM Insider. After that period, the service will migrate to Zomato's new District app.
Why is PTM considering selling its ticketing business despite its profitability?
-PTM may be looking to focus on its core business in finance, especially after facing regulatory issues that led to the shutdown of PTM's payments bank earlier this year.
How have the shareholders of Zomato and PTM reacted to the deal?
-The shareholders have welcomed the deal, as evidenced by a 2% rise in Zomato shares and a 0.3% rise in PTM shares.
What was Zomato's financial performance in the last quarter, and how does it compare to the previous quarter?
-In the last quarter, Zomato posted 4,200 CR rupees in revenue, with a profit of 253 crores. This is a significant jump compared to the previous quarter.
What is the growth rate of Zomato's food delivery business compared to its quick commerce business?
-While Zomato's food business revenue increased by 10%, its quick commerce revenue, which includes the Blinket service, surged by 222%.
Why did Zomato decide to scrap its inter-city food delivery option?
-Zomato scrapped the inter-city food delivery option because it did not gain traction among users.
What is Zomato's plan for expanding its quick commerce business?
-Zomato plans to add 1,000 new Blinket warehouses by the end of the financial year and is investing nearly 300 CR rupees in this financial year.
How does Zomato envision integrating the newly acquired ticketing business with its existing services?
-Zomato could integrate the ticketing business by offering food delivery at sports events or food orders at movie halls, creating new opportunities for cross-promotion and service enhancement.
What is the significance of the 'Feeding India' concert organized by Zomato?
-The 'Feeding India' concert, headlined by Dua Lipa and organized by Zomato, is a strategic move to kick off the newly acquired ticketing business and attract traffic to it.
What are the potential downsides of the dominance of BookMyShow and PTM in the online multiplex booking space?
-The dominance of these two players, which make up 90% of all online multiplex bookings, has led to criticism from Indian courts for imposing unfair charges, such as internet handling fees.
What is Zomato's ultimate ambition with its business model?
-Zomato aims to become India's lifestyle platform, offering services for food, movies, concerts, and other indoor and outdoor activities.

Outlines

00:00

📈 Zomato's Acquisition of PTM Insider: Diversification and Growth Strategy

Zomato, a leading food delivery service in India, has acquired PTM Insider, an entertainment ticketing platform, for approximately 2,000 CR Rupees, or $238 million. This strategic move is part of Zomato's diversification efforts beyond home delivery, as they recently launched a new mobile application called District, aimed at consolidating outdoor activities including dining, movies, and sports events. PTM Insider will continue to operate for another 12 months before fully integrating into Zomato's ecosystem. The acquisition is also beneficial for PTM, allowing them to focus on their core finance business after facing regulatory challenges earlier this year. Market reactions to the deal are positive, with Zomato's shares rising by 2% and PTM's by 0.3%. Zomato's revenue saw a significant increase, largely due to the rapid growth of their quick commerce segment, Blinket, which is expected to become a major contributor to their financial success. The company is investing heavily in this area, with plans to add 1,000 new Blinket warehouses by the end of the financial year. Additionally, Zomato is exploring innovative ways to integrate their services, such as offering food delivery at sports events or movie halls, opening up endless opportunities for business expansion. The company's ambition is to become India's lifestyle platform for both indoor and outdoor activities, a goal that aligns with the growing middle class and increasing disposable income in the country.

05:02

🌳 One Tree for Humanity: A News8 Network Initiative

The second paragraph shifts focus to environmental concerns, highlighting the imminent threat of climate change and the urgent need for action. The 'One Tree for Humanity' project is introduced as a News8 network initiative, emphasizing the importance of individual contributions to environmental conservation. The initiative encourages planting trees as a symbol of commitment to the environment, with the goal of engaging 1.4 billion Indians in this collective effort. The paragraph also touches on the T20 World Cup and other global events, suggesting a broader context of international cooperation and shared challenges. The message is one of unity and collective responsibility in the face of climate change, urging individuals to take part in creating a sustainable future.

Mindmap

Keywords

💡Zomato

Zomato is an Indian online food delivery and restaurant discovery platform. It is one of the two main subjects of the video script, which discusses its acquisition of PTM Insider. The company is known for its food delivery services but is also expanding into other areas such as ticketing and quick commerce, as illustrated by the acquisition of PTM Insider's ticketing business.

💡PTM Insider

PTM Insider is an entertainment app of PTM, which allows users to purchase tickets for movies, concerts, and sports events. It is the business that Zomato is acquiring, as part of Zomato's strategy to diversify beyond food delivery. The script mentions that Zomato is paying around 2,000 CR Rupees, which is approximately $238 million, for this business.

💡Acquisition

Acquisition refers to the purchase of one company or entity by another. In the context of the video, Zomato's acquisition of PTM Insider's ticketing business is a strategic move to expand Zomato's offerings and enter the ticketing market, which is a new area of growth for the company.

💡Diversification

Diversification in business means expanding into different areas to reduce risk and increase growth opportunities. Zomato's acquisition of PTM Insider's ticketing business is an example of diversification, as it allows Zomato to move beyond its core food delivery service into the entertainment ticketing sector.

💡District App

The District app is a new mobile application unveiled by Zomato. It is designed to consolidate Zomato's outdoor business, including dining out, movie tickets, and sports tickets. The app represents Zomato's strategy to integrate various aspects of a consumer's lifestyle into a single platform.

💡Quick Commerce

Quick Commerce is a term used to describe the rapid delivery of goods, often within minutes. In the script, it is mentioned that Zomato's quick commerce revenue grew by 222%, indicating that this sector is growing much faster than traditional food delivery and is a key area of focus for Zomato's future growth.

💡Revenue

Revenue refers to the income generated from a company's business activities. The script discusses the revenue figures for both Zomato and PTM, highlighting the financial performance of the companies and the ticketing business that Zomato is acquiring.

💡Profit

Profit is the amount of money left after all expenses have been deducted from revenue. The script mentions that PTM's ticketing business had profits close to 30 CR rupees, indicating its financial health prior to the sale.

💡Core Business

Core business refers to the primary activities or products that a company is known for and which generate the majority of its revenue. The script suggests that PTM is looking to focus on its core business of finance, which may have been a factor in their decision to sell the ticketing business.

💡Regulators

Regulators are government agencies or officials that oversee and enforce rules within a particular industry. In the script, it is mentioned that PTM ran into trouble with regulators, which led to the shutdown of PTM's payments bank, possibly influencing their decision to focus on their core business.

💡Market Predictions

Market predictions are forecasts about the future direction or trends within a particular market. The script references market predictions that suggest the golden age of food delivery is over and that growth in this sector will be subdued, prompting Zomato to explore new areas of business.

💡Strategic Planning

Strategic planning involves setting goals and determining actions to achieve them. The script describes Zomato's strategic moves, such as the acquisition of PTM Insider and the organization of a concert featuring Dua Lipa, as part of a broader plan to become India's lifestyle platform for various services.

Highlights

Zomato, a food delivery business, is acquiring PTM Insider, an entertainment ticketing platform.

The deal is valued at 2,000 crores INR ($238 million).

PTM Insider offers movie, concert, and sports tickets.

Zomato's acquisition is part of a diversification strategy.

Zomato launched 'District', a new app for outdoor activities.

PTM is likely to focus on its core finance business after the sale.

Ticketing generated significant revenue for PTM, but the company chose to sell.

Zomato's shares rose 2% following the announcement.

PTM's shares also saw a slight increase of 0.3%.

Zomato posted a revenue of 4,200 crores INR in the last quarter.

Zomato's Quick Commerce revenue grew 222%, outpacing food delivery.

Zomato is investing in Quick Commerce with plans for 1,000 new warehouses.

Experts predict the end of the golden age for food delivery services.

Zomato is integrating food delivery with ticketing for events.

Zomato is organizing a concert in Mumbai featuring Dua Lipa.

The acquisition could lead to Zomato becoming a dominant player in the ticketing space.

The Indian middle class is expanding, which could boost the live events industry.

The acquisition has been met with mixed reactions due to potential market dominance concerns.