After Warren Buffett-led Berkshire Hathaway picked up a stake in India’s unicorn startup Paytm, Nilesh Shah of Kotak AMC said that the development is proof that India is doing well, however, the ‘Oracle of Omaha’ may be 25 years late.
After legendary billionaire investor Warren Buffett-run Berkshire Hathaway picked up a stake in India’s unicorn startup Paytm, Nilesh Shah of Kotak AMC said that the development is proof that India is doing well, however, the ‘Oracle of Omaha’ may be 25 years late.
“Undoubtedly, if the investor of the stature of Warren Buffett enters India, it’s a great welcome sign. He did come out for selling his insurance, but didn’t work well. I’m not aware if he has invested in any other Indian company. So if comes and invests here, it’s a stamp that we are doing well. A global investor of Warren Buffett’s stature believes that it’s worth putting his money into India. In my opinion, he’s probably 25 years late. But, be that as it may,” Nilesh Shah told in a video-based interaction with BloombergQuint.
Notably, Chinese e-commerce major Alibaba-backed Paytm received funding of around Rs 2,500 crore from Warren Buffett’s Berkshire Hathaway. In a statement, Paytm’s parent company One97 Communications said that US-based Berkshire Hathaway’s Todd Combs will join Paytm’s board of directors. While the details of the deal have not been disclosed, Indian Express reported citing sources that Berkshire will pick up 3-4 per cent stake, valuing Paytm at $10 billion.
Earlier in May last year, Buffett had pointed out at Berkshire Hathaway’s annual general meeting (AGM) that India holds immense potential and he would soon make investment in good businesses in the country. He had also then told ET Now in an interview that it’s difficult to ignore the Indian market considering its huge and enormous size.
“What India can offer to investors is a huge market, so if we collaborate more globally and liaise, something that we did in the mobile handset space. Few years ago we were importing all mobile handsets, and then we went into screwdriver and assembly technology, and today we have Samsung setting up world’s largest mobile handset plant in Noida,” Nilesh Shah told the channel.