Best printers for Home

Best Mixer Grinder

Best wired Earphones

Best 43 Inch TV in India

Best Wi Fi Routers

Best Home Theatre in India

Smart Watch under 5000

Best Laptops for Education

Best Laptop for Students

<ul><li>The shares bought by ANT Group, an associate company of Alibaba, just before the IPO had lost nearly ₹16,012 crore (over $2 billion) of their value in the first two months of <keyword id="6357120" type="General" weightage="20" keywordseo="paytm" source="Orion">Paytm</keyword>’s listing.</li><li>The company has bought shares worth ₹33,600 crore in Paytm at an average price of ₹1,833, which is the highest among all institutional investors.</li><li>If ANT Group had sold all its shareholdings in Paytm during the IPO, it would have got ₹39,400 crore ($5.2 billion) in return.</li><li>Check out our <a href="https://www.businessinsider.in/bi-newsletter">weekly explainers</a> on the hottest topics and <a href="https://www.businessinsider.in/newsletters_signup.cms">sign up</a> if you like them.</li></ul>All the retail investors who lost money on Paytm’s public issue, it may bring you some solace that even the company’s largest and one of the oldest backers from the Alibaba Group’s wealth fell on the fear of missing out despite being an investor in the digital payments giant for the last six years. <br /><br />The shares bought by ANT Group, an associate company of Alibaba, before the initial public offering (IPO) — at an average cost of ₹1,883 apiece ⁠— lost nearly ₹16,012 crore (over $2 billion) ⁠of their value in the first two months of Paytm’s listing. So far, there has been no public report of ANT selling <keyword id="4326962" type="General" weightage="20" keywordseo="paytm-shares" source="Orion">Paytm shares</keyword> since the listing. <br /><br />                                                    <div type="Video" msid="88035227" hostid="261" title="When will Paytm start making money" dataSource="BUSINESSINSIDER" thumbUrl="https://denmark.timesinternet.in/cmslite/api/app/images.jpg?msid=88035227"></div><br />Now, Macquarie has said <a href="https://www.businessinsider.in/business/corporates/news/paytms-stock-down-over-40-since-listing-heres-why-analysts-expect-it-to-sink-deeper/articleshow/88810339.cms">that the stock could fall to ₹900</a> in the next one year, down another 24% from Monday’s closing price. <br /><br />If ANT Group had sold all its shareholdings in Paytm during the IPO, it would have got ₹39,373 crore ($5.3 billion), leading to a profit of ₹5,800 crore ($782 million). <br /><br />Alibaba’s affiliate had sold nearly 3% of its shareholdings for ₹4,704 crore (nearly $630 million), but it still owns 24% shareholdings in Paytm that are now worth ₹ 18,657 crore by Monday market closing (January 10).<br /><br />The value of the residual stake in Paytm could have been worth ₹34,669 crore if the digital payments giant had maintained its IPO issue price of ₹2,150.<br /><br /><table style="border-width: initial; border-style: none; table-layout: fixed; width: 468pt;" class="redcator-table-advance"></colgroup><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Pre-IPO Average Price<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Total Investment<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Value of residual shareholding* <br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Value of shares sold in IPO**<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Gross Loss, at ₹1,157 <br /><br /></td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">ANT Group<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹1,833.30<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹33,600 crore <br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹18,657 crore<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹4,704 crore <br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹16,012 crore<br /><br /></td></tr></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody></table><em>Source: Paytm’s filings, Business Insider calculations</em><br /><em>*The value of remaining shareholdings has been derived based on the closing price of Paytm’s share</em><em>s </em><em>(₹1,157) on January 10</em><em>.</em><br /><em>**Shares in the IPO were sold at ₹2,150. </em><br /><br />Business Insider had earlier reached out to Paytm and ANT Group to seek its comments for this article.<br /><br />Paytm has lost more than $10 billion in market cap in the last two months of trading. The company was last valued at $10 billion (₹76,094 crore) on January 10 versus $19.9 billion in its IPO.<br /><br />"Paytm’s payment business accounts for about 70% of revenue, which will be under threat if there are any regulatory changes . Also, its entry into insurance sectors has been rejected by regulators. The stock is trading at about 17 time FY23 sales which seems overvalued considering higher expenses and risk of attrition of senior executives," Manoj Dalmia, Founder and Director at Proficient Equities Private Limited, said.<br /><br />                          <div type="image" title="Not just small investors, even Alibaba-owned ANT Group and Softbank have lost money on Paytm" msid="88824685" hostid="261"></div><br />Alibaba, on the other hand, has reported a net profit of ₹3,727 crore ($500 million), since its average cost of acquisition of equity shares was ₹583 only. The company still has shareholding worth ₹4,701 crore ($635 million) in the company, calculated based on the January 10 closing price of ₹1,157. This could have been worth ₹8,736 crore ($1.1 billion), at the IPO issue price. But ANT didn’t sell all its shares in the IPO.<br /><br /><table style="border-width: initial; border-style: none; table-layout: fixed; width: 468pt;" class="redcator-table-advance"></colgroup><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Shareholder<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Existing shareholding<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Value of existing shareholding now, at ₹1,157 <br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Value of existing shareholding, at IPO issue price of ₹2,150 <br /><br /></td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">ANT Group<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">24.7%<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹18,657 crore ($2.5 billion)<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Over 34,669 crore ($4.6 billion)<br /><br /></td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Alibaba<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">2.4%<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹4,701crore ($635 billion)<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹8,736 crore ($1.1 billion)<br /><br /></td></tr></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody></table><br />Japanese investor SoftBank sold majority of its shareholdings from SVF Panther (Cayman) Limited in the IPO, giving it an exit of ₹1,689 crore ($226 million). <br /><br />However it still owns about 17% stake in the company through SoftBank Vision Fund India. They would have made ₹24,351 crore if they completely exited the company during the IPO, but the value has now dropped to ₹13,104 crore. <br /><br /><table style="border-width: initial; border-style: none; table-layout: fixed; width: 468pt;" class="redcator-table-advance"></colgroup><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Shareholders <br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Shareholding pre-IPO<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Shareholding post-IPO<br /><br /></td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">ANT Group<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">27.9%<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">24.7%<br /><br /></td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">SoftBank<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">18.4%<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">17.2%<br /><br /></td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Alibaba<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">4.8%<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">2.4%<br /><br /></td></tr></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody></table><br />The average price paid by SVF India Holdings (Cayman) Limited to acquire a share of Paytm has not been disclosed as it was not selling any shares during the IPO.<br /><br />                          <div type="image" title="Not just small investors, even Alibaba-owned ANT Group and Softbank have lost money on Paytm" msid="88824756" hostid="261"></div><strong><br />SEE ALSO</strong><br /><a href="https://www.businessinsider.in/business/corporates/news/paytms-stock-down-over-40-since-listing-heres-why-analysts-expect-it-to-sink-deeper/articleshow/88810339.cms">Paytm’s stock down over 40% since listing; here’s why analysts expect it to sink deeper</a><br /><br /><a class="tout-title-link" href="https://www.businessinsider.in/business/telecom/news/vodafone-idea-news-the-government-is-now-the-biggest-shareholder-in-vodafone-idea/articleshow/88824061.cms">The government is now the biggest shareholder in Vodafone Idea</a><br /><br /><a href="https://www.businessinsider.in/investment/news/bitcoin-ethereum-and-others-have-lost-nearly-40-percent-since-their-record-highs-but-investors-are-still-better-off-than-they-were-a-year-ago/articleshow/88823379.cms">Bitcoin, Ethereum, and others are half-way down from their record highs, but investors are still better off than they were a year ago</a>

Not just small investors, even Alibaba-owned ANT Group and Softbank have lost money on Paytm

<p><strong></strong></p><ul><li><strong>Alibaba cofounder <keyword id="424838" type="PERSON" weightage="60" keywordseo="Jack-Ma">Jack Ma</keyword>'s <keyword id="9541717" type="UNKNOWN" weightage="60" keywordseo="Ant-Group">Ant Group</keyword> is gearing up for a record $34 billion IPO.</strong></li><li><strong>Ant owns stakes in two financial-technology companies that also count <keyword id="6358963" type="DEFINITION" weightage="60" keywordseo="Warren-Buffett">Warren Buffett</keyword>'s <keyword id="6362665" type="ORGANIZATION" weightage="60" keywordseo="berkshire-hathaway">Berkshire Hathaway</keyword> as an investor.</strong></li><li><strong>Berkshire and Ant both invested in Brazilian e-commerce group <keyword id="7640901" type="UNKNOWN" weightage="60" keywordseo="stoneco">StoneCo</keyword> when it went public in October 2018.</strong></li><li><strong>Buffett's company also bet on the owner of <keyword id="6357120" type="DEFINITION" weightage="60" keywordseo="paytm">Paytm</keyword> in August 2018, and Ant owns 30% of the Indian digital-payments specialist's parent company.</strong></li><li><strong><strong><a href="https://www.businessinsider.com/international?r=US&amp;IR=TIR=T">Visit Business Insider's homepage for more stories</a>.</strong></strong></li></ul><p>Warren Buffett may be looking forward to Ant Group's public debut in the coming weeks, as it promises to pull some of <a href="https://markets.businessinsider.com/stocks/brk-b-stock">Berkshire Hathaway</a>'s lesser-known investments into the spotlight.</p><p><a href="https://markets.businessinsider.com/stocks/baba-stock">Alibaba</a> cofounder Jack Ma spun off Ant from the Chinese e-commerce giant in 2011, but still owns 8.8% of the affiliate. Ant owns Alipay, China's leading online-payments platform. It is <a href="https://markets.businessinsider.com/news/stocks/ant-group-ipo-billion-largest-ever-jack-ma-alibaba-raise-2020-10-1029721033">seeking to raise more than $34 billion</a> via a dual listing in Hong Kong and Shanghai, setting the stage for the biggest initial public offering in history.</p><p><strong><em>Read more:</em></strong><em> </em><em><a href="https://www.businessinsider.com/stock-picks-to-buy-companies-beat-q3-earnings-expectations-bofa-2020-10" target="_blank" rel="noopener noreferrer">BANK OF AMERICA: Buy these 11 underowned stocks ahead of their earnings reports because they're the most likely candidates to beat expectations in the weeks ahead</a></em></p><p>At first glance, Buffett's sprawling conglomerate — which owns scores of businesses such as See's Candies, Geico, and the BNSF railway as well as billion-dollar stakes in Apple, Bank of America, and Coca-Cola — appears to have little in common with Ant, a financial-technology titan.</p><p>However, Berkshire and Ant are both investors in two fintechs, <a href="https://markets.businessinsider.com/stocks/stne-stock">StoneCo</a> in Brazil and Paytm in India.</p><p>Buffett's company <a href="https://markets.businessinsider.com/news/stocks/warren-buffett-berkshire-hathaway-snowflake-ipo-110-percent-stoneco-gain-2020-9-1029577322#">spent about $340 million</a> on StoneCo's shares when it went public in October 2018, giving it a roughly 11% stake in the e-commerce specialist. Ant snapped up $100 million worth of stock at the same time.</p><p>Berkshire also plowed around $360 million into One97 Communications, Paytm's parent company, in August 2018, <a href="https://money.cnn.com/2018/08/27/technology/paytm-warren-buffett/index.html">CNNMoney reported at the time</a>. Ant owns more than 30% of One97, according to its IPO filing, making it a key investor in Paytm, which was <a href="https://www.businessinsider.com/paytm-may-use-funding-to-add-new-services-2019-11?r=US&amp;IR=TIR=T">valued at $16 billion last November</a>.</p><p><strong><em>Read more:</em></strong><em> </em><a href="https://www.businessinsider.com/chamath-palihapitiya-shares-5-sectors-shaping-long-term-investing-plan-2020-10?r=US&amp;IR=TIR=T" target="_blank" rel="noopener noreferrer">'I'm basically going to be long growth': Billionaire investor Chamath Palihapitiya has hauled in a 997% return since 2011. He details the 5 sectors shaping his long-term investment playbook.</a></p><p>Buffett famously sticks to businesses he understands and has <a href="https://markets.businessinsider.com/news/stocks/warre-buffett-berkshire-hathaway-570-million-snowflake-ipo-rare-unicorn-2020-9-1029574925#">avoided investing in tech companies and IPOs</a> for most of his career, so it's no surprise that he wasn't behind the StoneCo and Paytm bets. Todd Combs, the CEO of Geico and one of Buffett's two portfolio managers, made those wagers.</p><p>Combs also <a href="https://markets.businessinsider.com/news/stocks/warren-buffett-berkshire-hathaway-snowflake-ipo-stake-800-million-gain-2020-9-1029629868#">struck the deal</a> for Berkshire to invest $735 million in Snowflake when the cloud-data platform went public in September.</p><p>Ant's mammoth IPO is set to shine a light on its StoneCo and Paytm stakes, and Berkshire's bets on those companies in the process. Given Combs' taste for <keyword id="2461546" type="PERSON" weightage="60" keywordseo="FinTech">fintech</keyword> bets, the two companies may well cross paths again.</p>

Jack Ma's Ant Group is targeting a record $34 billion IPO. Warren Buffett's Berkshire Hathaway stands to gain from its public debut

<ul class="summary-list"><li><keyword id="6358963" type="DEFINITION" weightage="60" keywordseo="Warren-Buffett">Warren Buffett</keyword>'s <keyword id="6362665" type="ORGANIZATION" weightage="60" keywordseo="berkshire-hathaway">Berkshire Hathaway</keyword> could make a 60% profit when <keyword id="6357120" type="DEFINITION" weightage="60" keywordseo="paytm">Paytm</keyword> goes public.</li><li>The investor's company owns 2.8% of the digital-payments startup, Paytm's draft <keyword id="6354763" type="UNKNOWN" weightage="60" keywordseo="ipo">IPO</keyword> filing shows.</li><li>Berkshire, Alibaba, <keyword id="2702533" type="PERSON" weightage="60" keywordseo="Ant-Financial">Ant Financial</keyword>, and <keyword id="163404" type="COMPANY" weightage="60" keywordseo="Softbank">SoftBank</keyword> have all agreed to sell some shares in Paytm's IPO.</li></ul><p>Warren Buffett's Berkshire Hathaway stands to make a 60% profit on its Paytm shares if the Indian digital-payments group goes public this year as planned.</p><p>Paytm's <a href="https://www.axiscapital.co.in/uploads/equity_documents/20210716104312_one_97_communications_limited__drhp.pdf">draft IPO prospectus</a> was published on Friday, revealing the company hopes to raise up to $2.2 billion from its stock-market debut. Buffett's company poured about $300 million into Paytm in August 2018, valuing it at roughly $10 billion at the time.</p><p>Berkshire still owns 17 million shares, or a 2.8% stake, Paytm's IPO filing shows. The fintech startup was privately valued at $16 billion in November 2019, <a href="https://www.bloomberg.com/news/articles/2019-11-25/paytm-is-said-to-raise-1-billion-from-softbank-and-others">according to Bloomberg</a>. If it secures that valuation as a public company, Berkshire's shares would be worth about $480 million - a 60% gain in three years.</p><p>Buffett and his team are poised to cash out some of those profits. Berkshire and other Paytm investors such as SoftBank, Alibaba, and Jack Ma's Ant Financial have agreed to sell an undisclosed portion of their stakes during the IPO.</p><p>Berkshire's investment in Paytm - a private, foreign, and unprofitable technology startup - might seem out of character for Buffett, who famously sticks to established US businesses that he understands deeply such as Coca-Cola, or American Express.</p><p>In fact it was Todd Combs, one of Buffett's portfolio managers, who negotiated the deal. Paytm's CEO <a href="https://economictimes.indiatimes.com/markets/expert-view/more-than-money-berkshires-todd-combs-coming-on-paytm-board-is-the-best-outcome-vijay-shekhar-sharma/articleshow/65578696.cms">confirmed that fact</a> to ET Now, and Combs recently retired from the fintech's board. Combs has spearheaded several of Berkshire's recent tech bets, including its investments in StoneCo, <a href="https://markets.businessinsider.com/news/stocks/warre-buffett-berkshire-hathaway-570-million-snowflake-ipo-rare-unicorn-2020-9">Snowflake</a>, and most likely <a href="https://markets.businessinsider.com/news/stocks/warren-buffett-berkshire-hathaway-invest-500-million-nubank-brazil-fintech-2021-6">Nubank last month</a>.</p><p>Paytm, previously known as One97 Communications, posted a 10% drop in revenue to the equivalent of $427 million in the year to March 31. That reflected a 38% slump in e-commerce and cloud services revenue, which offset sales growth of 24% in the payment and financial-services division. However, a sharp reduction in marketing and promotional expenses meant Paytm's after-tax loss shrunk 42% to $228 million.</p>

Warren Buffett's Berkshire Hathaway could bag a 60% profit when Paytm goes public

<br /> Of late, <keyword id="6360722" type="PERSON" weightage="60" keywordseo="ratan-tata">Ratan Tata</keyword> has made several personal investments in the country's digital economy. And now he is now picking up a small stake in <keyword id="181441" type="COMPANY" weightage="60" keywordseo="One97-Communications">One97 Communications</keyword>, which owns and operates <keyword id="6357120" type="UNKNOWN" weightage="60" keywordseo="PayTM">Paytm</keyword>, and will also take on the role of an adviser at the Delhi-based firm reveals reports the Economic Times. Paytm recently raised $200 million from Ant Financial, Alibaba's payments firm, to bolster its mobile shopping platform. The 76-year-old chairman emeritus of <keyword id="46894" type="PERSON" weightage="60" keywordseo="Tata-Sons">Tata Sons</keyword>, the holding company of the $100-billion <keyword id="6355725" type="CITY" weightage="60" keywordseo="Tata-Group">Tata Group</keyword>, has subscribed to fresh shares of Paytm, which is looking to directly compete with online retailers like Flipkart, Amazon and Snapdeal. <br />
<br />
"I'm happy that someone like him (Tata) has put his faith and trust in our values and mission. There is no better ad viser," Vijay She khar Sharma, founder of Paytm has told The ET.  <br />
<br /> Tata has earlier invested in Snapdeal, Urban Ladder, Bluestone and Car Dekho. With the ad dition of Paytm, his portfolio is almost half a dozen strong. Add to that his advisory role at venture fund <keyword id="1397792" type="UNKNOWN" weightage="60" keywordseo="Kalaari-Capital">Kalaari Capital</keyword>, and he could be branded as a mini venture capitalist. <br />
<br />
(Image: Reuters)<br />

Know what is on Ratan Tata’s shopping list today

<br /> <keyword id="6357120" type="UNKNOWN" weightage="100" keywordseo="PayTM">Paytm</keyword>, the mobile payments and commerce firm headquartered in Noida is looking at the coming year with hopeful eyes. As per reports, it is expecting its 110 million wallet users to add about $500 million in their wallets in 2016, which means a tenfold rise from 2015.<br />
<br /> "In 2015, we saw wallets become mainstream. Next year, as more and more businesses push marketing dollar spends to cashbacks and wallets, the recharge value and frequency will steadily increase," Paytm founder <keyword id="198636" type="PERSON" weightage="100" keywordseo="Vijay-Shekhar-Sharma">Vijay Shekhar Sharma</keyword> told ET.<br />
<br />
This projected figure doesn’t count cashbacks that the company offers its customers when they do e-commerce transactions via Paytm.<br />
Sharma is expecting to see startups offering a lot of extras including loans and insurances built on top of wallets next year, which would help them competing with credit cards, if not replacing them.<br />
<br />
As per existing norms set by the RBI, Paytm has to restrict its customers to Rs 10,000 wallet recharge per month on a mobile number and email ID verification. In order to do transactions above this amount, customers need to adhere to full Know Your Customer (KYC) norms, the process of which is like opening a bank account.<br />
<br /> Paytm, which was started in 2010, is backed by China's giant <keyword id="163405" type="CITY" weightage="100" keywordseo="Alibaba-Group">Alibaba Group</keyword> and affiliate <keyword id="2702533" type="UNKNOWN" weightage="100" keywordseo="Ant-Financial">Ant Financial</keyword>, and faces competition from <keyword id="143842" type="UNKNOWN" weightage="100" keywordseo="Mobikwik">MobiKwik</keyword>, <keyword id="6377963" type="UNKNOWN" weightage="100" keywordseo="Freecharge">FreeCharge</keyword>, <keyword id="545632" type="UNKNOWN" weightage="100" keywordseo="Airtel-Money">Airtel Money</keyword> and <keyword id="1493568" type="UNKNOWN" weightage="100" keywordseo="PayU">PayU</keyword>, all big names in the e-wallet business.<br />
<br />
<a href="http://economictimes.indiatimes.com/photo/48155124.cms"><em>Image source</em></a><br />

Santa’s come visiting Paytm! Its wallet size expected to increase tenfold in 2016

Digital payments and financial services firm <keyword id="6357120" type="COMPANY" weightage="20" keywordseo="paytm">Paytm</keyword> has received in-principle approval from the company's board to raise around ₹22,000 crore through an initial public offer during the October-December quarter this year, according to an industry source. <br /><br /> The company is looking at an enterprise value of over ₹2 lakh crore for the <keyword id="6354763" type="UNKNOWN" weightage="20" keywordseo="ipo">IPO</keyword>. <br /><br /> "The board of directors of Paytm has given in-principle approval for the mega IPO planned to be launched in October-December quarter. The company expects to raise around ₹21,000-₹22,000 crore from the IPO. This will also give some of the existing investors to offload some of their stake," the source aware of the development told . <br /><br /> The board meeting of the company was held on Friday. <br /><br /> When contacted, Paytm spokesperson declined to comment. <br /><br /> It is likely to be one of the largest IPOs in <keyword id="3658" type="LOCATION" weightage="20" keywordseo="India">India</keyword> if the company is able to achieve the target as per its plan.<br /><br /> Paytm shareholders include Alibaba's Ant Group (29.71 per cent), <keyword id="3749718" type="COMPANY" weightage="20" keywordseo="softbank-vision-fund">Softbank Vision Fund</keyword> (19.63 per cent), Saif Partners (18.56 per cent), <keyword id="198636" type="PERSON" weightage="20" keywordseo="Vijay-Shekhar-Sharma">Vijay Shekhar Sharma</keyword> (14.67 per cent). <br /><br /> AGH Holding, T Rowe Price and Discovery Capital, Berkshire Hathaway hold less than 10 per cent stake in the company. <br /><br /> Paytm claims to be around 30-50 per cent larger than its rivals in the segment with over 1.4 billion monthly transactions. <br /><br /> The company had reported narrowing of loss by 40 per cent and increase of revenue to ₹3,629 crore on year-on-year basis in the fiscal year 2019-20. <br /><br /><br /><strong>SEE ALSO:<br /><a href="https://www.businessinsider.in/tech/apps/news/twitter-is-at-odds-with-india-in-the-battle-to-control-online-speech/articleshow/83030224.cms">Twitter is at odds with the Indian government over new laws — reigniting the age old battle of national interest versus freedom of speech</a><br /></strong><a href="https://www.businessinsider.in/stock-market/news/mukesh-ambanis-reliance-industries-share-price-sees-the-fourth-best-weekly-gains-in-2021/articleshow/83031946.cms"><strong>Despite the nearly 6% rally, this is only the fourth best week for Reliance Industries’ shares this year</strong></a>

You Searched For "ant group paytm" and got 6 results

Not just small investors, even Alibaba-owned ANT Group and Softbank have lost money on Paytm

Kritti Bhalla

Jack Ma's Ant Group is targeting a record $34 billion IPO. Warren Buffett's Berkshire Hathaway stands to gain from its public debut

Theron Mohamed

Warren Buffett's Berkshire Hathaway could bag a 60% profit when Paytm goes public

Theron Mohamed

Know what is on Ratan Tata’s shopping list today

BI India Bureau

Santa’s come visiting Paytm! Its wallet size expected to increase tenfold in 2016

BI India Bureau

Digital payment firm Paytm gets a green signal from company's board to raise ₹22,000 crore via initial public offer

PTI

Popular Keywords

Buying Guides