Zomato Buys Paytm's Ticketing and Entertainment Business | Vantage with Palki Sharma
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
📈 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.
🌳 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
💡PTM Insider
💡Acquisition
💡Diversification
💡District App
💡Quick Commerce
💡Revenue
💡Profit
💡Core Business
💡Regulators
💡Market Predictions
💡Strategic Planning
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.
Transcripts
zato and PTM two of India's most
recognizable Brands one of them is
selling to another not their whole
business but a part of it you may have
heard of PTM Insider it is basically
PM's Entertainment app movie tickets
concert tickets sports tickets you can
buy all of them on PM Insider and zato
is buying this business both companies
announced the deal this week zomato is
paying around 2,000 CR Rupees to pm
that's
$238 million now I know you have
questions zato is a delivery business
they deliver food and groceries to your
home but PTM Insider is more about going
out so what explains this
deal well zomato is diversifying this
month they unveiled a new mobile
application it's called District this
app will consolidate zomato's outdoor
business whether it's dining out or
movie tickets or Sports tickets users
can still find ticketing options on patm
for the next 12 months after that it
will migrate to zomato's new app so that
explains zomato's decision they're
expanding Beyond home delivery but what
about PTM why are they selling this
business ticketing generated almost 300
crores in revenue for PTM profits were
close to 30 CR rupees so it wasn't
bleeding money then why are they trying
to sell it or why did they sell it maybe
because patm wants to focus on their
Core Business which is finance you may
may remember what happened earlier this
year PTM ran into trouble with
Regulators they had to shut down PM's
payments Bank perhaps that was a wakeup
call for the company a reminder to focus
on finance and markets approve of
this zato shares were up 2% today PTM
shares were up around 0.3% so
shareholders welcome this
deal but questions remain especially for
zamato and other food delivery companies
look at the last quarter zamato posted
4,200 CR rupees as Revenue out of which
profit was 253 crores it's a big jump
compared to the last quarter but look
who's contributing to that jump zato's
Food business Revenue was up 10% but
quick Commerce Revenue was up 222% and
that's blinket so blinket is growing
much faster than food delivery and
that's in line with Market predictions
most experts say that food delivery's
golden age is over that growth will be
subdued zato tried new ways to beat this
trend you may remember their inter city
option you could buy food from other
other cities well yesterday they scraped
it because it never really took off
which is why zomato is brunching out to
Quick Commerce and ticketing they want
to add 1,000 new blinket warehouses by
the end of this financial year they're
pumping in money to almost 300 CR rupees
in this financial
year so zomato expects blinket to be a
cash cow maybe it expects the same with
with PM ticketing and they have the
tools to do it experts say zomato could
integrate their businesses just think
about it food delivery at sports events
or food orders at movie Halls the
opportunities are endless all you need
is a big bang event to kick it off and
zato is doing that too their CEO posted
this message today zato is organizing a
concert in Mumbai on the 30th of
November the feeding India concert
and guess who's helping headlining it du
alipa it's clearly a strategically
planned announcement zato acquired PM's
business on Wednesday the concert was
announced on Friday chances are it will
bring a lot of traffic to their
ticketing business but even otherwise
this industry is growing you see India's
middle class is expanding our disposable
income is rising so Live Events will
become more popular like comedy shows or
sports leagues or live plays but this
rise also has a Down side right now only
two players dominate this space bookm
show and PTM they make up 90% of all
online Multiplex bookings that sort of
dominance has side effects Indian courts
have criticized bookm show in the past
they've been accused of imposing unfair
charges like internet handling fees what
whatever that
means so this acquisition has many
factors and consequences zato's dream is
to become India's lifestyle platform for
food for movies for concerts for
anything outdoors or indoors it's an
ambitious dream that won't be easy to
[Music]
realize across continents one powerful
news
[Applause]
source bringing you diverse perspectives
on the issues that matter
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we go beyond the boundaries to give you
that little extra about every sporting
[Music]
moment so thank you for making first
post 5 million strong we're counting on
your support and you can trust us to
bring you the news unfiltered and
unvarnished
climate change is on our
doorstep it's time for a revolution to
take
Route and it starts with 1.4 billion
Indians it starts with one tree one tree
for
Humanity one tree for Mother Earth one
tree for a future
project one tree a news8 network
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initiative on this today the T20 World
Cup bang move across to the west
east hello I'm Al coming to you from
South Africa today we have a
special we start with an report on India
nulear for the first time since off
became a nule hello and welcome to First
po America I'm micam coming to you live
from the nation's capital of Washington
DC
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