According to documents filed with the Registrar of Companies, One97 Communications Ltd, the parent of Paytm, has raised US$ 300 million from Warren Buffett’s Berkshire Hathaway Inc. Berkshire Hathaway’s arm BH International Holdings has bought 1,702,713 shares at US$ 176.18 (Rs 12,352.6) apiece, the value as of Aug. 28 when the board approved the infusion.
Paytm’s parent One97 Communication Ltd. is valued at $10 billion (Rs 70,634 crore) after the deal in which Berkshire Hathaway infused US$300 million (Rs 2,103 crore).
The valuation of Paytm jumped 20 per cent after it raised funds from billionaire investor Warren Buffett’s Berkshire Hathaway Inc. According to the filings, One97 shares were worth Rs 10,560 apiece, valuing the company at $8.34 billion (Rs 58,586 crore) in May 2018.
Berkshire Hathaway has joined a long list of globally renowned investors such as Japan’s SoftBank, China’s Alibaba and Ant Financial, who have invested their money in Paytm. SAIF Partners and MediaTek are also included as investors.
The investment has granted Berkshire Hathaway a 2.9 per cent stake in the company, which consists of Alibaba Group as its largest shareholder with 38.4 per cent stake, followed by SoftBank Group Corp and SAIF Partners that hold close to 20 per cent each.