Zomato's big Paytm play puts a spanner in KKR's BMS plans
Zomato's recent acquisition of Paytm's entertainment business has put a cloud over KKR's planned investment in BookMyShow (BMS), India's largest online ticket-booking platform, said two people aware of the development. KKR is believed to be renegotiating with BMS over the deal size and valuation, said sources.
KKR had earlier planned to invest about $250-300 million in Reliance Industries Ltd-backed BookMyShow to acquire a significant minority stake, ET first reported in January. The valuation of BMS then was estimated to be around Rs 7,500 crore ($900 mn), ET reported.
A KKR spokesperson declined to comment, while BookMyShow did not respond to the queries sent on Saturday.
Zomato's entry into the entertainment and ticketing market is expected to hit the revenue of BookMyShow, which enjoys a near-monopoly with 75% market share.
The largest shareholder of BMS, operated by Bigtree Entertainment, is Reliance unit Network18, holding a 39% stake. Other existing investors include Accel, Elevation Capital, Stripes Group, and TPG Growth.
Zomato, a household name with food delivery service and quick commerce platform Blinkit, plans to increase its presence in the going-out vertical. Earlier, 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.
Also Read | BookMyShow’s business story gets Zomato’s Paytm plot twist
In the last fundraise round in 2018, TPG Growth and other investors deployed $100
