Berkshire comes bearing gifts for Paytm

It includes a renewed image, diversified shareholder base and potentially being a distribution platform of choice for Berkshire’s portfolio companies

This is the first time a US investor is investing in an Indian fintech

This deal is non-traditional for Berkshire in multiple ways

It helps Paytm get rid of its ‘Chinese company’ tag. It will also have a diversified shareholder base protecting it from board conflicts

But the Berkshire tag does come at a premium

It’s nothing short of a biblical tale. Paytm*, India’s largest digital payments company, has drawn three wise men from lands afar to shower it with gifts.

First came the Chinese king, Alibaba. It presented Paytm with the Chinese digital payments playbook. Japanese behemoth SoftBank was next, bearing the single largest cheque any Indian tech company had seen until then. And now, investment firm Berkshire Hathaway, led by billionaire investor Warren Buffett, has made an investment of about $300 million in Paytm’s parent company—One97 Communications Ltd. Berkshire’s investment marks the first time that any large US investor—much less a legendary firm like Berkshire—has taken a position in an Indian fintech company.

AUTHOR

Arundhati Ramanathan

Arundhati is Bengaluru-based. She is interested in how people use money in the digital age and how new economies will take shape based on that interaction. She has spent over 10 years reporting and writing on various subjects. Previous stints were at Mint, Outlook Business and Reuters.

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