Zomato’s recent acquisition of Paytm’s ticketing business for ₹2,048 crore signals a strategic expansion into the "Going out" sector, complementing its impending launch of the “District” app. This acquisition marks Zomato’s third major B2C venture, following the success of its core food delivery service and Blinkit.

The acquired ticketing business, which recorded a Gross Merchandise Value (GMV) of ₹2,000 crore in FY 2024, generated ₹297 crore in revenue with an Adjusted EBITDA of ₹29 crore. The transaction, valued at 1x GMV and 7x sales, reflects a calculated move by Zomato to diversify and enhance shareholder value through this new vertical.

Post-acquisition, Zomato plans to migrate customer traffic from existing platforms like Paytm, Insider, and TicketNew to its “District” app, incentivizing users to adopt this new service. The company projects a Gross Order Value exceeding ₹10,000 crore by FY 2026, aiming for a 40% Compounded Annual Growth Rate (CAGR) and an EBITDA margin of 4-5% over the medium to long term.

Looking ahead to FY 2027, Zomato envisions "District" achieving a GMV of ₹20,000 crore, with margins at 3% and an absolute EBITDA of ₹600 crore. If this trajectory holds, the business could experience a 10-12x increase in valuation, similar to the exponential growth witnessed with Blinkit, which has already seen a 20x valuation surge since Zomato’s acquisition in 2022.

The market anticipates "District" to become a significant value driver for Zomato, potentially elevating its overall business valuation substantially. This expansion reinforces Zomato's strategy of leveraging synergistic acquisitions to fuel growth in the competitive B2C space.