According to ** report,Warren BuffettBerkshire Hathaway liquidated India's largest digital payments company in 2021paytm。This marks the god of stocksWarren BuffettSuffered a huge failure in the Indian market. Warren BuffettTake 1$6.4 billion of ** sold inpaytmof 25% shareholding. This time the clearance ran away,Warren BuffettHow much money did you lose?At the exchange rate at the time, he would have lost 31% per share. However, given the strength of the dollar over the years andRupeeThe impact of the crash, the loss was as high as 46%. This timeWarren BuffettIt was a miscalculation to defeat India.
Berkshire Hathaway in 2018InvestmentsAbout 2$600 million merger and acquisitionpaytmA 3% stake in the company, which was valued at about $10 billion at the time. However,paytmThere are many difficulties in the field of commercial applications. Although it is called "Indian Alipay", compared to Chinese Alipay,paytmThere are gaps in the scope of the payment platform, business logic, and user stickiness.
paytmofStart a businessThe journey dates back to 2009, when they saw it in the populous Indian marketInternetHuge business opportunity for payments. However, India's business environment and infrastructure are relatively lagging behindpaytmInThe early days of entrepreneurshipMany difficulties were encountered. Until 2015,paytmdevelopment is still not improving, and it is at risk of being dragged down.
Fortunately, the Prime Minister of IndiaModiIn 2015, the "Digital India" strategy was launched, for:paytmTremendous opportunities are offered. ModiPush India hardInternetgreatly reduce the cost of Internet access and make it easier for people to accessInternet。In addition, he announced the introduction of "demonetisation" to combat money laundering and counterfeiting. This series of policies has been directly introduced to the people of IndiaInternetEra. paytmThanks to this, the number of users has grown rapidly.
However,paytmThe shortcomings in the field of commercial applications are gradually emerging. Unlike China's Alipay, which is developed on the basis of **,paytmAfter the success of the payment platform, he began to try to do e-commerce. This led to:paytmDeficiencies in business logic and application scenarios. In addition,paytmIt also faces competition from multinational giants such as GooglePay, ApplePay, and AmazonPay, which have more mature supporting products and rich payment scenarios in the payment field.
withpaytmThe ** of the stock price, the market value gradually decreases. In 2021,paytmThe stock price fell sharply and even broke. Although the stock price has been ** this year, it is still compared to the time of the IPOSignificant declineWarren BuffettClearance India Alipay can also be seen as a wise choice becausepaytmThe chances of turning over don't look like much.
It's worth thinking about whyWarren BuffettMisjudgment of the Indian market?Despite the potential and opportunities in the Indian market, the business environment and competitive pressures have led to thisWarren BuffettDifficult to succeed in this market. paytmAs a leader in the Indian market, it is also facing competition from giants such as Alibaba, Google, and Amazon, which further exacerbates the market's interest in the marketpaytmof uncertainty.
fromWarren BuffettClearancepaytmIn this event, we can see the differences between different markets. The same product may encounter different development dilemmas in different markets. Success in a new market requires a deeper understanding of the local business environment and user needs, as well as the flexibility to adapt and innovate to local conditions. Therefore,Warren BuffettThe defeat to India also taught us a lesson that before entering a new market, we need to do enough research and understanding of the market situation to avoid blindnessInvestmentsand the risk of failure.
To sum it up,Warren BuffettClearance of Alipay in IndiapaytmIt is because of its development dilemma and the shortcomings of business logic. Under the pressure of giant competition and the business environment,paytmIt is difficult to find enough application scenarios and user stickiness, resulting in a continuous decline in its market value. It also reminds us that while a market has potential, it is necessary to conduct a thorough analysis and understanding of the market before entering it to avoid itInvestmentsFailures and losses.