Warren Buffett’s Berkshire Hathaway entering a $1 trillion market in India

A
Sadhu or a Hindu holy man pays the vendor through Paytm, a
digital wallet company, after buying a book during the annual
religious festival of Magh Mela in Allahabad.
Reuters/Jitendra Prakash

• Warren Buffett’s Berkshire Hathaway confirmed it is
  investing in the parent company of Paytm. 
• The transaction is among the first of the company’s
  investments in India.
• Buffett said last year India is a “huge, enormous”
  market with “incredible” potential.

Warren Buffett’s Berkshire Hathaway is putting some of its
massive cash pile to work in India.

Berkshire confirmed Monday it has invested in One97
Communications Ltd., the parent company of Paytm, which is the
largest mobile-payment company in India.

Berkshire had been considering an investment of between $286
million to $357 million and a 3-4% stake in the
company, the
Economic Times reported earlier Monday. That would bring the
value of Paytm, which is not profitable, to more than $10
billion. 

The transaction could mark one of Berkshire Hathaway’s first
direct investments in India, the Economic Times added, but
Buffett wasn’t directly involved in it. 

Buffett has been eager to boost Berkshire Hathaway’s business
outside of health insurance, writing
in a company letter this year he wanted to do so through one
or more “huge” acquisitions. Berkshire had
a record $111 billion of cash on its balance sheet
last quarter.

In an interview with local news channel ET Now last year, Buffett
said the potential for the country is “incredible,” calling it
a “huge, enormous market.”

“If you tell me a wonderful company in India that might be
available for sale, I’ll be there tomorrow,” he added.

Other major Paytm investors include Chinese tech giant Alibaba
and Japan’s Softbank.