Zomato’s Acquisition of Paytm’s Entertainment Business Could Affect KKR’s Investment in BookMyShow

Zomato’s recent acquisition of Paytm’s entertainment business is raising concerns about private equity major KKR’s planned investment in BookMyShow (BMS), India’s leading online ticket-booking platform, according to a report from The Economic Times.

Sources indicate that KKR may be renegotiating the terms of its deal with BMS, including the valuation and size of its investment. Previously, KKR had been expected to invest between $250-$300 million for a minority stake in BMS, with the platform valued at approximately ₹7,500 crore at the time.

Neither KKR nor BookMyShow has responded to requests for comment on these developments.

The landscape has shifted after Zomato finalized the acquisition of Paytm’s event ticketing subsidiaries, Wasteland Entertainment Private Limited (WEPL) and Orbgen Technologies Private Limited (OTPL). The total cost of the acquisition is reportedly ₹2,048 crore, with OTPL valued at ₹1,264.6 crore and WEPL at ₹783.8 crore.

This strategic move by Zomato into the entertainment space is expected to impact BookMyShow’s dominance, as BMS currently holds about 75% of the market share in online ticket booking. Zomato, which is also focusing on expanding its quick commerce and going-out verticals, has ambitious plans. CEO Deepinder Goyal has projected that the gross order value of Zomato’s going-out vertical could surpass ₹10,000 crore by FY26.

Despite these challenges, BookMyShow is determined to maintain its stronghold in the market. The platform, which posted nearly ₹1,000 crore in revenue for fiscal 2023, plans to leverage its exclusive contracts with suppliers, multiplex chains, event organizers, and other key stakeholders. BMS’s operating revenue more than tripled in the year ending March 31, 2023, rising to ₹976 crore from ₹277 crore in FY22.

The competition in the online entertainment space is heating up, with a Technavio report projecting the global online movie ticketing service market to grow by $8.83 billion between 2024 and 2028. As Zomato enters the fray, BookMyShow will be keen to safeguard its position as the dominant player in India’s entertainment ticketing industry.

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