Zomato acquires Paytm Insider for INR 2,048 Cr, raising concerns about overvaluation, especially given Paytm Insider's position as a distant second to BookMyShow.
Similar doubts arose when Zomato bought Blinkit in 2022, but Blinkit’s success later justified the investment. However, the factors behind Blinkit's growth may not apply to event ticketing.
Analysts suggest Zomato may have overpaid by up to 60%, valuing Paytm Insider far above industry benchmarks. The valuation is questioned, given its revenue of INR 297 Cr in FY24.
Zomato's strategy hinges on expanding its 'going-out' vertical, leveraging its millennial and Gen Z user base. However, Paytm Insider's expertise is limited to ticketing, not event management.
BookMyShow dominates the market with 20 years of experience and exclusive event rights. Zomato's success in this space depends on innovative features and disrupting the current market leader.