Back in 2018,Warren BuffettsubsidiaryBerkshire HathawayThe company is the largest digital payments company in IndiapaytmInvestmentsAbout 2$600 million, acquiring a 3% stake in it at a valuation of about $10 billion. However, as of this year,Warren BuffettDecided to clear Indiapaytm, with 1$6.4 billion ** sold its 25% shareholding. fromInvestmentsCost and *** to see,Warren BuffettThe loss per share was 31%. But taking into account the exchange rate factor of the strengthening of the US dollar and the sharp fall of the Indian rupeeWarren BuffettThe loss reached a staggering 46%.
Warren BuffettAlipay for IndiaInvestmentsThe mistake makes people wonder: why is such a company known as "Indian Alipay" in such a predicament and tends to fail?
Since 2009,paytmRealizing the potential of India's huge population market, he decided to enter the marketInternetPayment business. However, the gap between the rich and the poor in India andInternetLow penetration is an obstacle. Until 2015,ModiThe Prime Minister launched the "Digital India" strategy for IndiaInternetDevelopment creates a good environment. The cost of Internet access has decreased, the penetration rate has increased, plusModiimplemented in 2016".Remonetation Order", driving the adoption of online payments in Indiapaytmhas been rapidly developed. Through cooperation with Alibaba, SoftBank, BlackRock, Berkshire and other financiers,paytmRapid growth, and was once pinned on high hopes.
However, prosperity and challenges have always been with thempaytmdevelopment. theBusiness modelofVulnerabilitiesso that it is faced with the coming fromGoogle, Amazon and other international giants. paytmIt lacks sufficient application scenarios in the field of commercial applications and cannot be compared with Alipay. At the same time, itsThe decline also indicates that the company's outlook is not optimistic. This is tooWarren BuffettAn important reason for deciding to liquidate.
in the analysisWarren BuffettClearance IndiapaytmIn the process, we can draw several important lessons and reflections:
First of all, introducing the same product or service to different markets does not necessarily mean success. In different countries and regions, cultures,EconomyEnvironments, user needs, etc., will be different, so we need to have a deep understanding of the target market, and make appropriate adjustments and innovations.
Secondly,Business modelis one of the important reasons why a business fails to succeed. InpaytmIn the case of the company, the company relied too much on the promotion of policies and the support of capital in the early stage of development, and lacked its own core competitiveness andSustainabilityofBusiness model。Therefore, enterprises should pay attention to at the beginning of their establishmentBusiness modelThe construction and market demand to ensure long-term competitiveness andSustainability
In addition, the technical background andFinanceStrength is also of great significance to the development of enterprises. InpaytmIn this case, the cooperation with Alibaba and SoftBank has provided sufficient financial support for the company's financing, and obtained relevant technology and market expansion opportunities. So, forStart a businessto find the right partner andInvestmentsIt is very important to strengthen the construction of technological strength.
Finally, for:Investmentsis ongoingInvestmentsDecisions need to be made adequatelyDue diligencewithRisk assessmentWarren BuffettClearance IndiapaytmThe lesson of failure shows that even stock gods can make mistakes. Therefore, asInvestmentsshould be cautious and prudentInvestmentsattitude, and consider multiple factors when making decisions.
In general,Warren BuffettClearance IndiapaytmThe experience of failure provides us with a valuable case study to help us better understand the market potentialBusiness modelwithInvestmentsThe importance of decision-making, etc. It also reminds us of:Start a businesswithInvestmentsThe process should be carefully analyzed and evaluated to reduce risk and increase the chances of success.