Berkshire Hathaway takes stake in Indian mobile payment app Paytm

Indian mobile payment app cum digital wallet Paytm has secured an undisclosed equity investment from US-based investment firm Berkshire Hathaway.

Available in 10 Indian languages, Paytm enables users to make payments to other Paytm users apart from making payments for online shopping, utilities, phone recharge, institution fees, restaurant bills and many others. The Indian mobile payment app has seen strong growth since the demonetization announcement in India last year.

Berkshire Hathaway has taken the stake in Paytm by investing in its parent company One97 Communications. Through its stake, the US-based investment firm’s Investment Manager Todd Combs gets to join the board of directors of Paytm. The board also has independent directors including Mark Schwartz of Goldman Sachs, and Pallavi Shroff of the Shardul Amarchand Mangaldas law firm.

Berkshire Hathaway has now joined Ant Financial, SoftBank, Alibaba and SAIF Partners as major stakeholders in the Indian mobile payment app.

Berkshire Hathaway invests in Indian mobile payment app Paytm – Vijay Shekhar Sharma – Founder and CEO of Paytm (left) and Berkshire Hathaway Investment Manager Todd Combs (right). Photo courtesy of Paytm.

Todd Combs, commenting on Berkshire Hathaway investment in Paytm, said: “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.”

Paytm bagged a funding of $1.4 billion from SoftBank in May 2017. Prior to that, the Indian mobile payment app saw a funding of $60 million from MediaTek in August 2016.

Commenting on Berkshire Hathaway investment in Paytm, Vijay Shekhar Sharma – Founder and CEO of Paytm, said: “We feel both excited and humbled by this endorsement. Berkshire’s experience in financial services, and long-term investment horizon, is going to be a huge advantage in Paytm’s journey of bringing 500 million Indians to the mainstream economy through financial inclusion.

“It is my honour to welcome Todd to our board, where he will bring his wealth of experience to guide our management team.”