In FY24, the business being acquired generated a combined GOV of more than Rs 2,000 crore (29% YoY growth). During the same period, the business generated revenue of Rs 297 crore and Adjusted EBITDA of Rs 29 crore (translating to about 1.5% Adjusted EBITDA margin as a % of GOV).

The food delivery company will acquire for total consideration of Rs 2,048 crore, OTPL will be acquire by the company for Rs 1,264.6 crore and WEPL will be acquire by the company for Rs 783.8 crore.

As per the agreement, OCL will transfer its movies ticketing business and sports and events ticketing business to its wholly owned subsidiaries OTPL and WEPL respectively through a slump sale. Zomato will do a primary infusion into OTPL and WEPL by way of a preferential allotment for an amount equal to the slump sale consideration.

Simultaneously, the company will acquire the entire stake owned by OCL in OTPL and WEPL through a share purchase transaction, resulting in OTPL and WEPL becoming wholly owned subsidiaries of the company.

As part of the transaction, around 280 employees will move to Zomato. There is no other major physical infrastructure being acquired.

The said acquisition will be completed within 90 days from the execution date of the agreement.

The company will launch District app. “In the short term, District app will duplicate the offerings and over time, we will gradually nudge our customers to move from the Zomato/ Paytm/ Insider/ TicketNew apps to the District app,” Deepinder said in shareholders’ letter.

The company’s going-out business (which includes dining-out and event ticketing) did Rs 3,225 crore of GOV in FY24 growing at 136% YoY. It expects GOV more than Rs 10,000 crore in FY26. The company said that in the medium to long term, this business has the potential to deliver 4-5% Adjusted EBITDA margin as a % of GOV.

Zomato connects customers, restaurant partners and delivery partners. Customers use Zomato to search and discover restaurants, read and write customer generated reviews and view and upload photos, order food delivery, book a table and make payments while dining-out at restaurants. On the other hand, it provides restaurant partners with industry-specific marketing tools which enable them to engage and acquire customers to grow their business while also providing a reliable and efficient last mile delivery service. The company also operates a one-stop procurement solution, Hyperpure, which supplies high quality ingredients and kitchen products to restaurant partners.

The food delivery company’s consolidated net profit spurted to Rs 253 crore during the quarter compared with Rs 2 crore posted in corresponding quarter last year. Revenue from operations jumped 74.09% YoY to Rs 4,206 crore in Q1 FY25.

The scrip rose 0.02% to Rs 260 on he BSE.