Berkshire Hathaway’s has confirmed about investing in Paytm’s parent company One97 Communications Pvt. Ltd. This deal is seeking the attention of entrepreneurs all across the world as Warren Buffett is known for his smart moves while investing his money. Let us have a look at what this deal reveals about the future of the Indian startup ecosystem:
India becoming favourite in the eyes of International companies
There is no doubt that India has become a popular marketspace for international giants. Flipkart-Walmart deal confirmed how big Indian market is and Berkshire buying stakes in Paytm is like a stamp to those who are seeing a massive future in India.
Which startups are getting attention?
Not only startups, preferably the technology-based one are getting main attention and this deal shows the same thing. Buffett who is not known for investing much in digital firms has shown a positive response to India’s Paytm and this means that even he looks confident about the growth of technology in India in coming few years.
Impact on stock market
Even the Indian stock market is impressed with this deal. Popular investors are congratulating Paytm for the success.
There was a time that people used to say 'good investors like Buffet will never invest in Indian tech'
That last barrier has fallen today. https://t.co/Xl9Ray2Bc7
— Anand Lunia (@anandlunia) August 27, 2018
Warren Buffet to invest in Paytm
Didn’t expect it, but a good marriage if it goes through…Paytm will be the first Indian tech company to touch USD 100 B valuation.
— Rajesh Sawhney (@rajeshsawhney) August 27, 2018
The game changer
Experts believe that demonetization was the game-changer for startups like Paytm. Many new players have entered after the response Paytm got during that period.
Indian startups are showing growth in terms of sales but what about profits? Most of the e-commerce startups are still in a loss and are burning money to attain customers. Startups need to work with a long-term, sustainable business model as offering discounts without margins will not solve the problems for long.