Warren Buffett could double his money with Paytm IPO
Based on One97’s last funding round in 2019, when it was valued at $16 billion, Berkshire’s 2.8% (17 million shares) stake was worth $448 million, translating into a gain of 49.33%. Paytm has, till date, raised close to $3.5 billion. In September 2018, the Warren Buffet-owned investment powerhouse had pumped in $300 million (₹2,179 crore) in One97 Communications, in a funding round that valued the startup at $10 billion. The deal also marked the first investment by Buffett in India and that too in a unicorn.
It was Todd Combs, one of Buffett’s ace portfolio managers, who negotiated the deal with One97 after Mark Schwartz, chairman, Goldman Sachs Asia and an independent director on Paytm’s board, got the conversation going. Combs, who stepped down from the board this June, is largely behind Berkshire’s technology bets, including the recent investments in Snowflake and StoneCo.