Warren Buffett's Berkshire Hathaway has picked up stake in India-based mobile wallet company Paytm and will get a position on the Board.
Warren Buffett’s Berkshire Hathaway has picked up stake in India-based mobile wallet company Paytm and will get a position on the Board. Paytm’s Founder and CEO Vijay Shekhar Sharma said that the investment amount is ‘handsomely higher’ than Softbank’s investment.
Speaking with ET Now, he said that he cannot reveal the deal amount but noted that it is higher than Softbank’s investment. He said that Softbank deal happened at a valuation of over $7 billion.
Meanwhile, news agency PTI reported, quoting unidentified sources, that Berkshire is pumping about $300-350 million into the company, valuing it at over $10 billion. Last year, Japanese giant Softbank had purchased 20% stake in Paytm.
Vijay Shekhar Sharma expressed hope that the investment from Berkshire will help Paytm achieve its goal of bringing 500 million Indians to the mainstream economy through financial inclusion.
Berkshire’s investment manager Todd Combs has joined the board of directors, Paytm said in a statement. He said that he has been impressed with Paytm and is excited to be a part of its growth story as it looks to transform payment and financial services in India. Paytm’s parent company One97 Communications already has global investors like Alibaba and Ant Financial as key stakeholders.
In the annual stakeholders’ meeting, Warren Buffett had said that financial payments industry is a big deal and many players are trying to re-invent the space. This investment to Paytm is a big shot in the arm at a time when there are multiple digital payments’ players are testing the space, especially after demonetisation.