New Delhi, Aug 21 (IANS): Digital payments major Paytm on Wednesday announced to sell its entertainment ticketing business to food aggregator Zomato for Rs 2,048 crore in cash, in a move to focus on core payments and financial services distribution.

The transfer will also include 280 existing employees from the entertainment ticketing business at the company.

One 97 Communications Limited (OCL), the parent company of Paytm, will transfer its entertainment ticketing business to Zomato by transfer of OCL’s entertainment ticketing business to it’s 100 per cent subsidiaries -- Orbgen Technologies Pvt Limited (OTPL) and Wasteland Entertainment.

A Paytm spokesperson said that they built the entertainment ticketing business by addressing the market needs of the time.

“This move allows us to continue focusing on long-term growth in our core areas and value creation for all stakeholders,” said the spokesperson.

Paytm built movie ticketing from the ground up, and acquired TicketNew and Insider for total consideration of Rs 268 crore from 2017 to 2018.

The company built the entertainment ticketing business to revenues of Rs 297 crore and Adjusted EBITDA of Rs 29 crores in FY24.

“The transaction value is subject to cash and net working capital adjustments at closing. Transaction closure is subject to satisfaction of agreed conditions precedent,” said Paytm.

Entertainment ticketing business includes movies, sports, and events, will be available on the Paytm app during a transition period of up to 12 months.

According to the company, the transaction generates significant profits for Paytm and cash proceeds will further strengthen the balance sheet.

In June, Zomato had confirmed that it was in discussions with Paytm for acquiring its movies and ticketing business.

The acquisition is Zomato's second-largest purchase, following its acquisition of quick commerce platform Blinkit in 2021, which was an all-stock deal worth Rs 4,447 crore.