BookMyShow’s business story gets Zomato’s Paytm plot twist
BookMyShow, the leader in India’s entertainment ticketing market, could face intense competition from Zomato, which is acquiring Paytm's ticketing business for Rs 2,048 crore and plans to build it into the company’s third main consumer vertical.
BookMyShow, whichposted nearly Rs 1,000 crore in fiscal 2023 revenue and is profitable, will try to protect its market share by using its clout with suppliers and other stakeholders, and leveraging exclusive contracts with multiplex chains, event organisers, sporting bodies, artists and theatre companies among others, analysts and industry executives said.
Meanwhile, Gurugram-based Zomato will seek to utilise profit from its other mature businesses like food delivery to scale the going-out segment that includes the dining out and entertainment ticketing verticals.
In a shareholder letter published on Wednesday, Zomato’s chief executive Deepinder Goyal said the company anticipates the gross order value of its going-out vertical to grow more than threefold to over Rs 10,000 crore by FY26.
“...we see the going-out business as a combination of multiple categories with strong network effects – with some categories driving traffic and certain categories driving profits. Idea is to drive profitability at a combined level while allowing for different sub-categories to operate at different margin profiles,” Goyal said.
The deal will give the company increased access to the lucrative movie and event ticketing business, which comprises nearly two-thirds of the going-out segment.
