Zomato is set to shake up India’s entertainment ticketing market by acquiring Paytm’s ticketing business for ₹2,048 crore. This acquisition positions Zomato to directly compete with BookMyShow, the current market leader, as it plans to integrate this new venture as a core part of its consumer offerings.
BookMyShow, which reported nearly ₹1,000 crore in revenue for fiscal 2023 and is profitable, holds a 75% market share in the movie ticketing segment. The platform benefits from exclusive contracts with major stakeholders, including multiplex chains, event organizers, and sports bodies. Analysts believe BookMyShow will leverage these relationships to maintain its dominance despite the upcoming competition.
Zomato, headquartered in Gurugram, aims to utilize profits from its established businesses, such as food delivery, to scale its entertainment ticketing and dining out segments. CEO Deepinder Goyal has projected that the gross order value for Zomato’s “going-out” vertical will exceed ₹10,000 crore by FY26. The company views this vertical as a blend of categories that can drive both traffic and profitability.
Industry experts highlight that Zomato’s entry into the ticketing business could create significant competition for BookMyShow. Zomato’s acquisition includes Paytm Insider, a well-regarded but under-scaled product. By integrating this with its upcoming app, District, Zomato plans to attract its existing customer base to its new entertainment platform. To succeed, Zomato will need to secure exclusive contracts and develop unique live event properties, areas where BookMyShow currently excels.
Zomato, which is publicly listed and has a cash reserve of ₹12,539 crore, will continue offering services under the current brands but will eventually transition everything to the District app. Goyal emphasized that the success of this acquisition hinges on smoothly migrating users from apps like Paytm, Insider, TicketNew, and Zomato to District. Although this may require some incentives, the financial risk is expected to be minimal.
With this strategic move, Zomato is set to become a formidable player in the entertainment ticketing market, challenging the long-standing dominance of BookMyShow.