Berkshire has invested in Paytm

Warren Buffet–owned Berkshire Hathaway (BRK.B) has recently confirmed that it has invested in Paytm’s parent company One97 Communications. The investment amount was not known, but according to sources, Berkshire spent $300 million–$350 million. The company and its subsidiaries have made many investments in a variety of sectors, including manufacturing, insurance, utilities and energy, freight rail transport, finance, and retail.

Berkshire’s investment follows Walmart’s (WMT) acquisition of a majority stake in India-based Flipkart. The move could be Berkshire’s first direct investment in India, thus signaling optimism in the Indian market.

Why Berkshire Hathaway Is Investing in Alibaba-Backed Paytm

Paytm in India

The investment in Paytm will give Berkshire a share in India’s attractive mobile payments market, which is expected to reach $1 trillion by 2023, according to estimates by Credit Suisse. Paytm is expected to use the investment amount to expand and diversify its payments network and build its financial services. Paytm has been growing its business across financial services and offline payments. 

Paytm has a dominant position in India’s digital payments space and has ~150 million users. Its investors include SoftBank, Ant Financial, Alibaba (BABA), and SAIF Partners.

India’s payments market

A majority of the Indian population prefer to use cash as a payment method. However, India’s Prime Minister Narendra Modi is making efforts to bring digitalization. In 2016, the Modi-led government banned high currency notes, which benefited Paytm the most. A lot of the urban population have adopted digital payments and don’t carry much cash with them.

A growing number of smartphone users as well as the availability of low-cost Internet have also boosted the digital payments market and attracted a lot of global players such as Amazon’s (AMZN) Amazon Pay, Google Pay, and PayPal (PYPL). These companies are trying to position themselves in India, an already saturated digital payments market, with domestic players such as ItzCash, CC Avenue, PayU, and Citrus Pay.

Latest articles

After opening on a bearish note on Wednesday, Tesla (TSLA) was trading with 4.8% losses for the day, near $195.25 at 1:16 PM ET.

With voting conducted in seven phases panning six weeks, India’s (EPI) elections have been a grand affair—to say the least. Tomorrow is the day of the results.

Qualcomm (QCOM) stock fell more than 10% in the first half of trading on May 22 after it lost its licensing lawsuit with the US FTC (Federal Trade Commission).

Apple (AAPL) suffered a setback recently when the US Supreme Court allowed an antitrust lawsuit against the company to proceed.

Today doesn’t seem to be a good day for electric vehicle companies. Earlier today, NIO stock hit an all-time low of $4.00.

22 May

Cannabis Stocks Struggle to Find Direction

WRITTEN BY Adam Jones

The cannabis sector has been struggling to find direction on May 22, with cannabis stocks trading on a largely mixed note in the first half.

172.31.1.77