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Berkshire's investment reflects success of Paytm's business model, says firm's Canada CEO

Updated : September 05, 2018 12:17 PM IST

Berkshire's investment in Paytm is a direct reflection of the successful business model the latter has adopted, said Harinder Takhar chief executive officer, Paytm Canada, pointing at how the Indian payments firm had earlier also managed to attract A-list investors like SoftBank and Alibaba.

"Berkshire adds tremendous value to our already formidable board. Although, fund raising at Paytm has not always been a joy ride; I remember 20 years ago the management did not even know where the next paycheck would come from. Paytm is now constantly trying to visualise how to offer different financial products that could benefit the customer," Thakar told CNBC-TV18's Nithya Balakrishnan who visited Paytm's Canada office.

The Oracle of Omaha, Warren Buffett recently picked up 4 percent stake in Paytm for around Rs 2,500 crore, which according to Thakar, is because of the sheer potential and market volume for the digital payments space.

Paytm also recently forayed into the mutual fund space through its Paytm Money channel. It also offers online shopping in India via Paytm Mall, while its biggest success story in India has remained mobile payment wallet.

Paytm has outsourced part of its operations to Toronto, Canada. "It is an underrated global financial capital," said Harinder, adding "the company's data centre of sorts operates out of Toronto. The team uses AI, analytics and machine learning to address fraud prevention and app development."

The firm currently has a team of more than 95 employees in Canada.
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