Warren Buffett’s Berkshire Hathaway Inc. has acquired a stake in one of India’s biggest digital payments firm Paytm.
While the companies did not disclose the deal size or the stake sold, according to sources, Berkshire Hathaway has bought 3-4% stake in Paytm for about $300-$350 million (or about ₹2,500 crore).
In a statement, One97 Communications, which owns the Paytm brand, said that the U.S.-based Berkshire Hathaway would have Todd Combs, investment manager at Berkshire Hathaway, on the company board.
Berkshire Hathaway joins Japanese giant SoftBank and China’s Alibaba Group, Ant Financial and SAIF Partners as key shareholders in Paytm.
“I have been impressed by Paytm and am excited about being a part of its growth story, as it looks to transform payments and financial services in India,” Mr. Combs said.
Financial inclusion
Paytm founder and CEO Vijay Shekhar Sharma said Berkshire’s experience in financial services, and long-term investment horizon, will be a huge advantage in Paytm’s goal of bringing 500 million Indians into the mainstream economy through financial inclusion.
The investment comes ahead of the introduction of payments services by WhatsApp in India.