Zomato is expanding its business by acquiring Paytm Insider, the entertainment and events ticketing division of One 97 Communications Limited (OCL), for Rs 2,048.4 crore. This acquisition, which has been approved by Zomato’s board, marks a strategic move into the entertainment sector, complementing its current food delivery and dining services.

According to a regulatory filing on Wednesday, Zomato will enter into a Share Purchase and Subscription Agreement (SPSA) with OCL, Wasteland Entertainment Private Limited (WEPL), and Orbgen Technologies Private Limited (OTPL) to finalize the acquisition.

The deal involves OCL transferring its movie, sports, and event ticketing businesses to OTPL and WEPL through a slump sale. OCL will subsequently invest in these subsidiaries via preferential allotment, using the proceeds from the sale to cover the slump sale payment. Zomato will then acquire OCL’s entire stake in both subsidiaries, making OTPL and WEPL wholly owned by Zomato. The acquisition is expected to be completed within 90 days of signing the SPSA, with OTPL valued at Rs 1,264.6 crore and WEPL at Rs 783.8 crore.

This move allows Zomato to diversify its offerings and enhance its "Going-out" business segment, which focuses on entertainment and leisure. OTPL, active since 2007, specializes in movie ticketing and reported a turnover of Rs 13.14 crore for the year ending March 31, 2024. WEPL, which has been in operation since 2015, deals with event ticketing and generated Rs 236.03 crore in the same period.

The acquisition aligns with Zomato’s strategy to strengthen its position in the “going-out” space, which includes various leisure activities such as movies, sports, live performances, and more. Zomato's founder and CEO, Deepinder Goyal, highlighted that this expansion would build on the company's existing dining-out business and create additional customer use cases in the entertainment sector.

This acquisition follows earlier indications from June that Zomato was interested in Paytm’s ticketing businesses, reinforcing its commitment to growing its “going-out” segment and integrating entertainment with its food services. The move also coincides with the launch of Zomato’s new app, ‘District,’ aimed at consolidating its entertainment offerings.