BookMyShow may be valued at $500-700 million if the proposed deal goes through.
The country's largest online firm, Flipkart reportedly is in talks with online ticketing firm, BookMyShow (Bigtree Entertainment Pvt. Ltd) to buy minority stake.
The move will benefit both the parties involved as it will help BookMyShow to revive its otherwise detoriating numbers. The deal is also expected to help Flipkart's payment servive, PhonePe which it acquired last year.
BookMyShow may be valued at $500-700 million if the proposed deal goes through, it said.
It is also to be noted that Network 18, owned by Mukesh Ambani-led Reliance Industries is the single largest shareholder in BookMyShow with a 39% stake.
Citing people familiar with the development, the Mint reported that Flipkart is looking to infuse fresh capital into BookMyShow through the purchase of shares from some of its existing investors.
According to the report, the startup will be valued at $500-700 million for the proposed transaction.
Earlier this month, BookMyShow had acquired Burrp, a Mumbai-based local restaurant recommendation engine, from Network18.
The acquisition is being carried out on a slump sale basis by Foodfesta Wellcare, an arm of Big Tree -- an associate firm of Reliance Industries, which is also the promoter group company of Network18. "The acquisition includes transfer of Burrp's key assets to BookMyShow, including employees and existing restaurant partnerships," BMS said in a statement. Big Tree owns and operates BookMyShow platform. In a regulatory filing, Network18 said: "The consideration for the slump sale is Rs 6.7 lakh and has been determined on the basis of valuation carried out by EY." Burrp is India's oldest food-tech business and currently lists over 56,000 restaurants across 12 cities.
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