*-Paytm is an Indian e-commerce payment gateway system. It was founded by Vijay Shekar Sharma, which is based out of Noida-based. Paytm launched an app for Canadian mobile phone, cable, Internet electricity, and water bill payments.
Berkshire Hathaway is a company which is an American multinational headquartered at from Omaha, Nebraska, United States and is headed by Warren Buffet.
Investment of PayTM by Berkshire
Warren Buffet picked up 3-4% in Paytm (One97 Communications Pvt Ltd), which is the fintech start-up capital table having the biggest names in the global venture capital business.
The investment took place as an endorsement for one of the world’s biggest and most respectable investors staying away from risky, technology private stocks. Also, the support is signalled with immense confidence in not only at Paytm, but also at the Indian tech and startup ecosystem. The deal, however, paved the way for 10-12$ billion which is the country’s most valuable consumer internet setup. The centre’s demonetization move in November 2016 was Paytm’s biggest turning point where investors rise in interest for Paytm boosts online transactions.
Thus, Paytm retains a huge brand loyalty for digital payments economy and ever since then the e-commerce sector with Paytm Mall launched its own payment bank. The biggest challenges for Paytm is included as a long-term, sustainable business model where the company continues to burn significant rise amounting with capital and attraction to new users retaining the existing ones offered by them the cash back and discounts. Thus by having challenges with a new user in India’s digital payments landscape, becomes more difficult for Paytm to maintain its dominance.
Buffet has also been previously said that he is very interested in bullishness on India being termed to be an “incredible” potential as a market. Berkshire thus joins with Alibaba (BABA) – Chinese conglomerate Alibaba and Japanese conglomerate SoftBank (SFTBF) supposed to be the biggest names as investors in Paytm.
Thus Berkshire having supposed to term as the 7th largest company with the company termed as the 3rd largest public company in the world. Thus by having a tie-up with Paytm, claimed at 3-4% despite being far the most for a startup company to dream about is with this being said in the future – Indian economy is having more expectations with their foreign counterparts for investments terming to be the country’s largest vision.