Warren Buffett-Led Berkshire Hathaway Sells Entire Stake In Paytm (Image: X @WarrenBuffett)

Warren Buffet-owned Berkshire Hathaway has sold its entire stake in the digital payment company Paytm. Berkshire Hathaway has sold its entire 2.46 percent stake in One97 Communications Ltd, the parent company of Paytm, through an open market transaction. According to the Economic Times, this major transaction was done at an average price of ₹877.29 apiece, and the total transaction value is about Rs 1,370 crore.

In 2018, Paytm received $300 million as an investment from Berkshire Hathaway Inc. It is worth mentioning that this deal was the Warren Buffett-led firm’s debut investment in the country. This investment was a boost for the startup industry in the country. Berkshire, via BH International, had 1,56,23,529 shares in the digital payment company, as per shareholding data as of September-end. Two foreign investors, Copthall Mauritius Investment and Ghisallo Master Fund, are the major buyers in this transaction. According to Outlook India, Ghisallo Master Fund LP acquired 42.75 lakh shares, and Copthall Mauritius Investment picked up 75,75,529 shares in Paytm.

Berkshire Hathaway sold its shares on the National Stock Exchange (NSE) at a loss of Rs 620 crore. In October, One97 Communications reported a narrowing of the consolidated loss to Rs 291.7 crore in the second quarter ended September 30, 2023. Notably, the firm had registered a loss of Rs 571.5 crore in the same period a year ago. Paytm, which is India”s largest financial services firm, was established in 2010. Paytm, founded by Vijay Shekhar Sharma, was created to facilitate online money transfers for merchants and customers. Later, the company expanded its services to add mobile and DTH recharge facilities and eCommerce features.