Paytm discusses selling movie ticketing business with Zomato, according to report.

Paytm, a beleaguered fintech company, is reportedly in discussions with online food delivery firm Zomato to sell its movie and events ticketing business. The talks are said to be in advanced stages, with other potential buyers also showing interest in the business. However, no final decision has been made yet, and the discussions are ongoing. The move comes as Paytm faces weakening sales and is seeking a revival strategy following its first recorded sales decline.

The company has recently announced its intention to trim non-core assets and has warned of potential job cuts. This decision is partly attributed to regulatory action on Paytm Payments Bank Ltd., which has disrupted much of the fintech’s business and led to the need for new partnerships with lenders. Paytm’s reliance on the bank for digital wallets and payments traffic has been significantly impacted by the regulatory measures, prompting the company to explore diversification and refocus its efforts on core businesses such as travel, deals, and cash backs. If the sale of its movie and events ticketing business is successful, it would enable Paytm to sharpen its focus on key areas crucial for its growth and merchant base expansion.

On the other hand, the purchase could potentially allow Zomato to expand its digital business into a new high-growth area, following its acquisition of Uber Technologies Inc.’s India food unit in 2020. Despite the reports and ongoing discussions, Paytm and Zomato have not responded to requests for comment on the matter. Paytm does not disclose standalone numbers for its movie and events ticketing business, but its marketing services business, which includes movie and events, recorded annual sales of 17.4 billion rupees in the fiscal year through March 2024.