Indian payments provider BillDesk to be acquired by PayU for $4.7bn
BillDesk, an Indian digital payments provider, has agreed to be acquired by PayU, the payments and fintech business of Dutch technology investor Prosus, for a sum of $4.7 billion.
Established in 2000, BillDesk serves Indian banks and businesses with its payments platform as well as customer engagement and loyalty solutions.
M N Srinivasu — Co-founder of BillDesk said: “BillDesk has been a pioneer in driving digital payments in India for well over a decade. This investment by Prosus validates the significant opportunity in India for digital payments that is being propelled by innovation and the progressive regulatory framework put into place by the Reserve Bank of India, India’s central bank.
“BillDesk has always been committed to making payments faster, easier and more secure. We are excited about what the two great teams at BillDesk and PayU can deliver together as a driving force within the evolving digital payments landscape in India.”
By acquiring the Indian firm, Prosus expects to see PayU become one of the top online payment providers in the world with a capability of handling a total payment volume (TPV) of $147 billion.
Prosus reckons that the PayU India and BillDesk combination can meet the changing payments requirements of digital consumers, government enterprises, and merchants in India.
The technology offered by the combined entity, post-acquisition, will reach out to even more of the sections of society that are excluded, while following the regulatory environment in India and providing robust protection to consumers.
Prosus further said that PayU India and BillDesk operate complementary businesses within the digital payment industry of India. Their combination is likely to pave the way for a financial ecosystem that can handle four billion transactions in a year, which is four times what PayU does currenty in India.
Laurent Le Moal — CEO of PayU said: “We believe this transaction will stimulate both innovation and competition within India’s digital payments industry. This will not only help to strengthen India’s digital economy, but also bring financial services to those who may have historically been excluded.
“This ambition is fully aligned with the Government of India’s vision of ‘Digital India’ and is a key objective for PayU across all the communities we serve globally.
“This deal is an example of how our purpose and our business objectives work together, accelerating growth and increasing access to financial services.”
The deal with BillDesk for PayU follows its previous acquisitions of CitrusPay, Paysense, and Wibmo in India for which it had spent around $6 billion.
PayU acquisition of BillDesk will be contingent on approval from the Competition Commission of India.