Paytm’s founder Vijay Shekhar took one meeting and two phone calls to bag 2500 crores from Warren Buffet’s company Berkshire and we are not astonished as Shekhar has proved to be a one-man army since forever.
Warren Buffet has acquired about 3.5% in Paytm (One97 Communications Pvt. Ltd) and this means a whole lease of fresh air for the Indian startup industry.
Seeing the confidence of Warren Buffet, a juggernaut investor across the World, there would be many more investors who would be convinced and promoted to invest in the Indian startups. Not only will this help Paytm gather a lot of funds and back support from the World’s leading investors.
Paytm has dethroned Flipkart who was the most valued Indian Startup till May. Flipkart became the most valued company after it was acquired by Walmart. However, after the Berkshire-Paytm deal, things seem to be changing. The Berkshire deal has engendered a fund inflow of $10-12 billion into the Paytm treasury, making the Indian company the most valuable internet startup.
We are excited to announce that US-based investment firm #BerkshireHathaway is now a part of our journey. Here’s to a great partnership and a greater India story! @vijayshekhar 🇮🇳 https://t.co/A6wBE4RBLn
— Paytm (@Paytm) August 28, 2018
There are several other apps in this domain which are trying to make a cut in the online payments domain. Google’s Tez, Amazon Pay, Flipkart’s PhonePe and the center’s UPI-based BHIM app are some of the significant digital payment players operating in India.
Why does Paytm attract so much interest from investors?
Paytm is not only providing a digital payments solution, it is also offering an e-commerce marketplace where shoppers can buy anything starting from a needle to a fridge. Some time ago, Paytm launched the feature of transferring money in any bank account, regardless of the city.
Apart from that, Paytm has become the most ideal and popular digital payment portal. Its seamless interface is a cherry on the cake. SoftBank Group and Alibaba, SAIF Partners, MediaTek and Ratan Tata are other major investors of Paytm.
Paytm’s continuous offers, unbeatable cash-backs have made it an Indian’s favorite. However, more cash back means more cash burnout for the company. It is, therefore, working on integrating a sustainable business model.