Berkshire Hathaway exited Paytm-parent firm One97 Communications Friday at a loss in about 40% regarding the investment that is high-profile made more than five years ago.
The Warren Buffett firm invested about $260 million in Paytm in 2018, acquiring a 3% stake in the financial services startup at a valuation of about $10 billion.
The investment giant — which sold a stake worth $36 million in Paytm in 2021, at a profit — sold its remainder position on Friday for $121.6 million, according to disclosure by the Indian stock that is local trade. Berkshire protected a return of not as much as $160 million on its ~$260 million financial investment in Paytm.
Paytm was Berkshire Hathaway’s very first direct startup financial investment in Asia, utilizing the price extensively celebrated because of the startup ecosystem that is local. Alibaba, SoftBank, and T Rowe Price were among other investors in Paytm.
But while Paytm, which allows users to make digital mobile transactions as well as access loan and invest in mutual funds, made its initial offering that is public a valuation north of $20 billion, it dropped considerably into the aftermath.
Shares of Paytm, which made its IPO first in 2021 at $25.8 apiece, dropped to as little as $5.58 last year. The firm that is indian since rebounded, ending Friday at $10.73 apiece following fast revenue growth and improving finances in recent quarters.
Paytm Revealed month that is last its F2Q24 revenue development had been powerful at 32% YoY, vs. 39% YoY final one-fourth (moderation due to time of web festive product sales). Repayments stayed powerful even though the loan development stayed large but loan that is personal moderated. Profitability enhanced; rendering it still another one-fourth of adjusted EBITDA profit.
