Paytm raises $300 million from Berkshire Hathaway
As a part of the deal, Berkshire Hathaway ’s investment manager Todd Combs, who was leading the investment discussions, will join Paytm’s board
The Paytm deal marks Berkshire Hathaway’s first investment in the country’s bustling startup ecosystem. Photo: Bloomberg
New Delhi: One97 Communications Ltd, the parent of Paytm, has raised $300 million from Warren Buffett’s Berkshire Hathaway Inc., according to regulatory documents sourced from Paper.vc.
Mint had first reported on 17 August that Buffet is set to buy a stake in Paytm, India’s largest payment services provider, and talks with Berkshire Hathaway have been on since early February this year to raise about ₹ 2,200-2,500 crore ($300-350 million) at a valuation of about $10-12 billion.
The Paytm deal marks Berkshire Hathaway’s first investment in the country’s bustling startup ecosystem. It is also a rare deal for the world’s best known investor, who typically avoids internet firms, and is being considered a boost for India’s startup industry.
A Paytm spokesperson did not respond to an email seeking comments.
As a part of the deal, Berkshire’s investment manager Todd Combs, who was leading the investment discussions, will join Paytm’s board, Mint reported.
Even though Alibaba-backed Paytm reported mounting losses, it came as a surprise to investors that Berkshire Hathaway chose to invest in Paytm, Mint also reported.
The investment comes amidst a digital payments war in the country, where Paytm’s near monopoly status is being challenged by numerous players such as Google Pay, Amazon Pay, BHIM and Flipkart-owned PhonePe, alongside new players like WhatsApp’s payments service.
Berkshire Hathaway joins a long list of globally renowned investors who have parked their money in Paytm, including Japan’s SoftBank, China’s Alibaba and Ant Financial. It also counts SAIF Partners and MediaTek as investors.
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