Warren Buffett’s Berkshire Hathaway exited Paytm at a 40% loss

Berkshire Hathaway sold its shares in Paytm-parent company One97 Communications on Friday, booking a loss of around 40% on the investment it made more than five years ago.

Warren Buffett’s company invested about $260 million in Paytm in 2018, acquiring a 3% stake in the financial services startup at a value of around $10 billion.

The investment giant – which sold a stake worth $36 million in Paytm in 2021, in earnings – sold the remaining position on Friday for $121.6 million, according to a disclosure on India’s local stock exchange. Berkshire got a return of $157 million on its ~$260 million investment in Paytm.

Paytm is Berkshire Hathaway’s first direct investment in India.

Shares of Paytm, which made its IPO debut in 2021 at $25.8 apiece, fell as low as $5.58 a year ago. The Indian company has since bounced back, ending Friday at $10.73 apiece after rapid revenue growth and financial improvement in recent quarters.

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