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Paytm raises $300mn from Berkshire Hathaway

India Global Business Staff

One97 Communications Ltd, the parent of Paytm, has raised $300 million from Warren Buffett's Berkshire Hathaway Inc. The Paytm deal marks Berkshire Hathaway's first investment in the country's bustling start-up ecosystem. It is also a rare deal for the world's best-known investor, who typically avoids internet firms, and is being considered a boost for India's start-up industry. As a part of the deal, Berkshire's investment manager Todd Combs, who was leading the investment discussions, will join Paytm's board. Even though Alibaba-backed Paytm reported mounting losses, it came as a surprise to investors that Berkshire Hathaway chose to invest in Paytm. The investment comes amidst a digital payments war in the country, where Paytm's near monopoly status is being challenged by numerous players such as Google Pay, Amazon Pay, BHIM and Flipkart-owned PhonePe, alongside new players like WhatsApp's payments service. Berkshire Hathaway joins a long list of globally renowned investors who have parked their money in Paytm, including Japan's SoftBank, China's Alibaba and Ant Financial. It also counts SAIF Partners and MediaTek as investors.

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