SoftBank's Vision Fund Sells Paytm Stake at $150 Million Loss
- SoftBank's Vision Fund sold its Paytm stake, incurring a loss of approx. $150 million in Q2 FY25.
- Berkshire Hathaway also exited Paytm with shares sold below the initial purchase price, marking a substantial investment shift.
Softbank's investment arm, Softbank Vision Fund, sold its stake in Paytm during the June quarter, incurring a loss of approximately $150 million, according to sources familiar with the matter.
Softbank had initially invested about $1.5 billion in One97 Communications, Paytm's parent company, in 2017, and exited with a loss of 10-12% in the April-June quarter of fiscal year 2024-25 (FY25).
Since November 2022 until last month, SoftBank has been steadily selling off its shares in Paytm. As of March 2024, the Japanese investor's stake in Paytm decreased to 1.4%, down from approximately 18.5% during the company's initial public offering in 2021.
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Warren Buffett's Berkshire Hathaway Inc. also exited Paytm by selling shares at a price lower than what they initially paid. Berkshire Hathaway had acquired a 2.6% stake in Paytm for ₹1,279.7 per share, totaling ₹2,179 crore, according to a report. These shares were sold at an average price of ₹877.29 per share, resulting in a transaction value of ₹1,370.63 crore in November.
Meanwhile, Treeline, a notable hedge fund from Singapore and Hong Kong, and UBS Principal Capital Asia increased their stakes in Paytm to 1.18% and 1.08%, respectively.
Edited by Harshajit Sarmah
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