Warren Buffett’s Berkshire Hathaway in talks to invest Rs 2000 crore in Paytm

Warren Buffett’s Berkshire Hathaway in t...

After attracting investment from global investment majors such as SoftBank and Alibaba, Paytm is now in talks with Warren Buffett’s Berkshire Hathaway to raise Rs 2,000-2,500 crore. This will be Warren Buffet’s first direct investment in India.

According to a report in Economic Times, Berkshire is likely to pick up 3-4% stake in Paytm through a primary subscription of shares. The deal would value Paytm at over $10 billion.

After raising $1 billion from SoftBank earlier this year, Paytm’s valuation rose to around $7 billion, which reportedly grew to $10 billion following a secondary share sale by employees of the company.

Being the first, this investment is a testament to the potential Buffet sees in India given that he has never invested in any technology company in the past. This is his first investment in a privately held technology company, even though Paytm still incurs losses.

According to Mint, Berkshire Hathaway has selectively invested in a few publicly listed tech companies such as IBM and Apple. While it recently exited IBM, it still remains invested in Apple.

“Berkshire Hathaway is impressed by the scale that Paytm has been able to build in a short period of time. They realise that technology companies go through a cycle of losses before they start generating cash,” ET quotes a source as saying.

While there has been no official statement from either of the companies on the deal, Paytm has neither denied nor accepted the news.

One97 communications (Paytm’s parent), founded by Vijay Shekhar Sharma in 2000, has grown to become one of the largest internet companies in India and has grown from being a mobile recharge business to a digital payments major with various arms such as a payments bank, an e-commerce arm, ticketing business, among others.

 ET reports that Paytm sees 5 billion transactions worth $50 billion in gross transaction value (GTV) on an annualised basis based on its performance in June.

As on FY17, its income stood at Rs 828 crore, an increase of 38% while its losses stood at Rs 899.6 crore.

Paytm is now betting big on the personal finance space with the launch of Paytm Money, which will offer savings instruments such as mutual funds and insurance as well.  


PostedOn: 28 Aug 2018 Total Views: 138




India’s first cryptocurrency ATM launche...

India’s first cryptocurrency ATM launched in Benga...

Installed by virtual currency exchange, Unocoin, the ATM allows customers to deposit and withdraw minimum amount of Rs 1000 from the platform. Despite the government and Reserve Bank of India’s (RBI) crackdown on cryptocurrency in India, virtual currency exchange Unocoin has installed a curren...

17 Oct 2018

50,000 posts in data science, machine le...

50,000 posts in data science, machine learning vac...

According to Gartner, out of 10 lakh registered companies in India, 75 per cent have invested or are going to invest in ML and data science. As India pushes its boundaries towards achieving digital growth, a new report said on Tuesday that over 50,000 positions in the fields of data science and Mach...

17 Oct 2018

iPhone XS, iPhone XS Max Launched: Price...

iPhone XS, iPhone XS Max Launched: Price in India,...

Apple on Wednesday took covers off its latest flagship iPhone series. Much like last year, the Cupertino giant announced three new variants in its iPhone 2018 lineup, the iPhone XS, iPhone XS Max, and the cheaper iPhone XR. The iPhone XS Max is essentially a larger iPhone XS.

13 Sep 2018

Apple shelves plan to launch UPI-based p...

Apple shelves plan to launch UPI-based payments se...

The main bone of contention seems to be the Reserve Bank of India’s recent data localisation rule. If you have been hoping to use Apple Pay in India, you may be in for some disappointment since the US tech giant has decided to put on hold its plans to launch its digital payments facility.Accor...

07 Sep 2018

Walmart Labs acqui-hires Bengaluru-based...

Walmart Labs acqui-hires Bengaluru-based micro-app...

Six Appsfly employees will join Walmart Labs’ customer experience engineering team. Though Walmart has been in the news over the past few month due to its deal with Flipkart, Walmart has been present in India as Walmart Labs, which is its research division engaged in developing local products ...

05 Sep 2018

Apple dominated global smartwatch market...

Apple dominated global smartwatch market in Q2 201...

Apple continued to dominate the smartwatch market with a 41 per cent share as global smartwatch shipments grew 37 per cent Year-on-Year in the second quarter of 2018, a Counterpoint report said on Friday. US-based wearables major Fitbit grabbed the second spot with 21 per cent market share while Fos...

31 Aug 2018

Google's payment app for India 'Tez' bec...

Google's payment app for India 'Tez' becomes Googl...

Digital payment service for India, Tez, for a global rollout, Google on Tuesday renamed the app as Google Pay and introduced new features that could soon help its Indian users get instant "pre-approved" loans from some banks. "Building for India has often meant Google building for everyone all aroun...

29 Aug 2018