Chinese e-commerce major Alibaba-backed Paytm has received funding of around Rs 2,500 crore from Warren Buffett’s Berkshire Hathaway Inc. In a statement, Paytm’s parent company One97 Communications Ltd said that US-based Berkshire Hathaway’s Todd Combs will join the payments company’s board of directors. According to sources, with the deal that saw Berkshire pick up 3-4 per cent stake, Paytm has been valued at $10 billion.
Last year, Paytm had received an investment of around $1.4 billion from Japanese SoftBank Group for 20 per cent stake in the company. For Paytm, the fresh round of funding has come at a time when it is battling for space in the payments sector with rivals like Flipkart’s PhonePe and Google Pay, as the industry is also expected the full-scale launch of payments by Facebook-owned messaging service WhatsApp.
One97 Communications also owns 49 per cent stake in Paytm Payments Bank. Paytm’s founder has also started e-commerce business under Paytm Mall that competes with giants like Amazon and Walmart-backed Flipkart.