Paytm has acquired TicketNew. TicketNew is a Chennai based online ticketing startup in the all-stock deal to strengthen its entertainment ticketing business. Paytm Entertainment, controlled by major, has brought out the majority stake held by Alibaba Pictures. It is an arm of China’s internet behemoth Alibaba valuing the company around $30 million.
However Paytm did not reveal any of its financial information of the transaction. Alibaba, which is a major investor in Paytm’s parent One97 Communications, backed TicketNew a year ago with Rs 120 crore, in an all-cash deal.
The development marks a clear intent of the Noida-based Paytm to take on the current leader in the segment, Book-MyShow. Book-MyShow has been focusing on its events business apart from its core business of movie ticketing.
TicketNew is was founded by Ramkumar Nammalvar. Paytm Entertainment said it has increased its online penetration by more than 50%. Orbgen Technologies operates TicketNew which is largely present in south India.
Paytm Entertainment sold over 52 million movie tickets in the past 12 months, clocking over 500% growth in the volume of tickets sold since its launch in May 2016, the company said. In contrast, BookMyShow sells up to 10 million tickets per month on an average, going up to 15 million in some months.
For Paytm, which is focusing to sell 100 million tickets in 2018. TicketNew’s acquisition will add over 600 screens across Tamil Nadu, Kerala, Karnataka, Andhra Pradesh and Telangana. Especially in marque single and neighborhood theatres, and along with the latter’s regional chains will drive greater footfalls and revenues.
“Under the TicketNew leadership, Paytm is seeking to connect (their) partner cinemas to more than 300 million customers on Paytm and further invest in helping grow their occupancy and revenues,” said Madhur Deora, CFO, Paytm.