PAYTM BUFFET

The news of Warren Buffet led Berkshire Hathaway buying stakes in Paytm has hit the technology world. What comes as a surprise is the way this deal was signed. Vijay Shekhar Sharma, founder and CEO of Paytm met Mark Schwartz, Board Member, who introduced him to the idea of meeting a potential investor, Warren Buffett’s Berkshire Hathaway Inc.

In no time, Sharma, Schwartz and Ravi Adusumalli (SAIF Partners’ Managing Partner) took the next step and met Todd Comb, the investment manager at Berkshire Hathaway Inc.

The meeting that happened on Valentine’s Day was concluded with discussions that went way ahead than just business. Followed by two phone calls in the days to come, the deal between the two giants was finalized.

However, Paytm did not agree on accepting the entire amount that was offered. According to Sharma, the company is not ready to dilute the stakes beyond the accepted investment, since it has enough capital in the bank.

Serving a platter of opportunities to the Indian financial services major, Berkshire’s involvement is a direct recommendation to the world. In India, the digital payments business is at the threshold of growth and the deal will act as an aid to the already existing policies like Digital India.

Sharma believes that the investment is followed by Berkshire’s faith in Paytm. The scale and execution of the work, according to him gives them the credibility. When asked about the expectations that the world’s most renowned investor has from them, “To build the dominant and biggest financial services company in India,” he said in an interview to Livemint.

The investment is a direct salutation of the growth of the Indian financial industry. The uniqueness and the prospects of growth have brought it to a pedestal where development can be eyed at every corner.

“This deal is an acknowledgement of scale of customers we are serving, how we are building a large financial services company led by payments as a moat. Biggest commitment from the Berkshire side is Todd Combs coming on our board,” Sharma said.

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Andrew has been in the online publishing industry since 2015. After receiving his degree in professional journalism from the Indian Institute of Journalism and New Media, he contributed to multiple websites as a freelance writer and feature editor. Mostly, Andrew tackles controversies and theories that lead to a specific conclusion that either debunk or justify a particular claim. Further, Andrew participates in social developments that aim to simplify every individual’s way of life and fight for peace. He is the new Editor-in-Chief of Pressroom Today.

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