Paytm is in trouble and has started preparations to save its movie and event ticketing business. For this, talks are being held with online food delivery company Zomato. Fintech company Paytm has taken this decision under restructuring.
Paytm’s business has suffered a significant setback after the Reserve Bank of India (RBI) banned Paytm Payments Bank. In such a situation, it is working on many options simultaneously to handle the falling sales. Paytm wants to focus on its payment business by laying off many employees and removing some businesses.
Paytm Wants To Focus On UPI Payment Segment
According to a Business Standard report, talks have started between Paytm’s parent company, One97 Communications and Zomato to sell the movie and events ticketing business. Citing sources related to the matter, the report claims the company will try to regain its lost prestige in the UPI payment segment by selling the movie and event ticketing business. Other options aside from Zomato are also seriously considered when selling this business.
Paytm’s Sales Decline For The First Time
Paytm, a company led by Vijay Shekhar Sharma, had said last month that its sales had declined for the first time. The company’s fintech business has suffered dramatically due to RBI’s action on Paytm Payments Bank. To save its business, the company has taken the help of 4 banks. Paytm and Zomato are currently silent about the deal movie and event ticketing business.
Zomato’s Digital Business Will Also Become Big
Paytm has not given information about the movie and event ticketing business figures. But, in March 2024, the company achieved annual sales of $17.4 billion through marketing service business. This includes movie and event ticketing, credit card marketing, and gift voucher business. If Paytm’s deal with Zomato is successful, the company can focus on travel, deals and cashback business. This will help Paytm to increase its sales and merchant base. On the other hand, Zomato’s digital business will also grow.
