MUMBAI: Berkshire Hathaway is in talks to invest about Rs 2,000-2,500 crore in Paytm parent One97 Communications, in what could be the first direct investment in India, according to an Economic Times report.

Berkshire, the conglomerate run by billionaire Warren Buffett, is said to pick up a 3-4 per cent stake in Paytm's parent and the deal is being done through a primary subscription of shares, the paper said citing people familiar with the matter.

The Noida-based company said last month that it conducted 5 billion transactions worth $50 billion in gross transaction value (GTV) on an annualised basis based on its performance in June. It saw total income increase by 38 per cent to Rs 828 crore with losses of Rs 899.6 crore in the year ended March 2017, according to the Registrar of Companies (RoC) filings.

If the transaction goes through, it will give Paytm more firepower to strengthen its market leadership against Flipkart-owned Phonepe and Google’s Tez besides potential competition from Facebook-owned WhatsApp and Reliance Jio.

One of Berkshire’s key fund managers, Todd Combs, who is also seen as a potential chief investment officer at the company, is leading the transaction, as per the reports.

Through One97 Communications, the company owns 49 per cent in Paytm Payments Bank with the remaining stake held by Paytm founder Vijay Shekhar Sharma in his personal capacity as per regulations.

Berkshire’s investment could be clinched in the coming weeks, valuing Paytm at over $10 billion, the report stated.

Japan’s SoftBank and China’s Alibaba Group are among the major backers of Paytm.