E-commerce giant Flipkart is in talks for a partnership with ticketing platform BookMyShow in a move that will construct its services and transaction offering against Paytm. The move if it comes through, is likely to improve India’s largest e-ticketing service in a market which has seen the rise of Alibaba-backed Paytm.
The chats, which were at initial stage may see the Tiger Global backed e-commerce player pick up a significant minority stake in BookMyShow. Flipkart’s investment in BookMyShow may also benefit Flipkart’s own payments platform Phonepe which it acquired previous year.
Flipkart’s partnership with BookMyShow, to launch an entertainment proffering, is the latest amongst the top 3 e-commerce players moves to build out integrated service verticals beyond their bread and butter e-commerce marketplace. Through Local Finds, Amazon Prime Video and Amazon Now, the Seattle-headquartered giant has been steadily building its hyperlocal and services offerings.
Even Paytm has to create armor in a similar direction through its recent buy of deals and discovery platforms Little and Nearbuy as also its talks with travel platform Via.com.
India’s e-commerce giants moving to construct their service vertical follows a model that China’s Alibaba has set in motion. The Chinese e-commerce giant along with its payments arm Ant Financial (Alipay) has invested in the Chinese online platform for services Meituan-Dianping.
BookMyShow has been firmly creating its original content accessing on both its video and newly introduced audio entertainment vertical JukeBox. BookMyShow is aiming at local language content for its video and audio platforms to pierce better in tier 2 and 3 towns, a move that will prove to be vastly favorable for Flipkart given its attempts to serve deeper in the smaller towns.
The company had raised Rs 550 crore last year led by Stripes Group in a deal which valued it at over Rs 3,000 crore. Its other investors include Reliance owned Network 18, and venture capital firms SAIF Partners and Accel India.