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PayU, a fintech services firm, will pay $4.7 billion for BillDesk. PayU and the owners of Indian digital payments service BillDesk have reached an agreement to acquire the latter, according to Prosus NV, the global consumer internet firm and one of the world's top technology investors. This will be one of the most significant transactions in the Indian fintech sector.
PayU, Prosus' payments and fintech business, which operates in more than 20 high-growth areas, will become one of the world's biggest online payment providers by total payment volume as a result of the proposed acquisition (TPV).
PayU focuses on high-growth areas and has three main businesses: domestic and cross-border payments, as well as consumer and small business credit solutions. and strategic investments in cutting-edge fintech firms Remitly in the United States and the development of a complete financial services ecosystem in India are among the initiatives.
BillDesk is an Indian success storey and one of the country's biggest payment enterprises, having been launched in 2000.
Together, PayU India and BillDesk will be able to meet the evolving payment needs of digital consumers, merchants, and government entities in India, as well as provide cutting-edge technology to even more underserved segments of society, all while adhering to India's regulatory environment and providing strong consumer protection.
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The deal, which is pending approval by India's Competition Commission, builds on PayU's prior successful acquisitions in the country, including CitrusPay, Paysense, and Wibmo.
Prosus has now invested $10 billion in India as a result of this transaction. It has invested $6 billion in India's tech industry so far.
We have a long and deep engagement with India, having sponsored and partnered with some of its most active entrepreneurs and emerging tech enterprises since 2005, BillDesk symbolises the ambition and expertise of Indian entrepreneurs, who are among the finest in the world in terms of product and service development, as well as understanding scalability and value. In a country the size of India, this is crucial, stated Bob van Dijk, Group CEO of Prosus.
Our announcement today demonstrates Prosus' commitment to establishing important, global consumer internet businesses that deliver useful products and services for millions of people in their daily lives, Payments and finance are a fundamental segment for Prosus, alongside classifieds, food delivery, and education technology, and India remains our top investment destination, he continued.
We believe this deal will drive both innovation and competition within India's digital payments industry, This would not only assist to improve India's digital economy, but it will also make financial services available to individuals who have been previously excluded. This goal is in line with the Indian government's vision of a "Digital India," and it is a critical goal for PayU in all of the communities we serve throughout the world, PayU CEO Laurent Le Moal said.
BillDesk has been a pioneer in advancing digital payments in India for well over a decade, Prosus' investment demonstrates the huge possibility for digital payments in India, which is being fueled by innovation and a progressive regulatory environment put in place by the Reserve Bank of India, the country's central bank, said M N Srinivasu, Co-founder of BillDesk.
According to the Reserve Bank of India's (RBI) FY21 annual report, the number of digital retail payment transactions increased by more than 80% from 24 billion in 2018-19 to 44 billion in 2020-21.
The RBI anticipates more than 200 million new customers to use digital payments over the next three years, with the average yearly transaction per capita increasing tenfold from 22 to 220.
Within India's digital payment market, PayU India and BillDesk conduct complementary companies. Together, the two hope to build a financial ecosystem capable of handling four billion transactions per year, which would be four times PayU's present level in India.
(Source: Business Standard)
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