Mumbai: Warren Buffett is set to make his first direct investment in an India firm, Paytm's parent firm One97 Communications, according to news reports.
Berkshire Hathaway Inc is in talks to invest about Rs 2,000-2,500 crore in Vijay Shekhar Sharma's Paytm, reports said.
Berkshire, the conglomerate run by billionaire Warren Buffett, is said to pick up a 3-4 percent stake in Paytm’s parent and the deal is being done through a primary subscription of shares, The Economic Times said citing people familiar with the matter.
One of Berkshire’s key fund managers, Todd Combs, who is also seen as a potential chief investment officer at the company, is leading the transaction, the newspaper reported.
Berkshire’s investment could be clinched in the coming weeks, valuing Paytm at over $10 billion, the paper said.
It will also be the company’s first investment in a privately-held technology company in the world. In the past, Berkshire Hathaway has selectively invested in some publicly listed tech companies, most notably International Business Machines (IBM) Corp. and Apple. Berkshire recently exited IBM, but still owns Apple stock, Mint reported.
Japan’s SoftBank and China’s Alibaba Group are among the major backers of Paytm.
Berkshire, One97 Communications, Softbank and Alibaba did not immediately respond to requests seeking comment, a Reuters report said.
Updated Date: Aug 27, 2018 09:56 AM