In one of the biggest deal in India’s payments space, Prosus Ventures (earlier Naspers) will acquire domestic payments gateway firm BillDesk for $4.7 billion.
The acquisition, which is the biggest consolidation in the sector, would bolster Prosus’ fintech business under PayU.Post the acquisition the combined entity of PayU and BillDesk will emerge as the leading online payment providers globally and in India by total payment volume (TPV), a company statement said.
Founded in 2000 by three former Arthur Andersen executives — M N Srinivasu, Ajay Kaushal and Karthik Ganapathy — BillDesk is one among the rare profitable internet companies in India.
The deal
The Mumbai-based company has been among the largest online payments processing companies in the country. The other players in the segment are PayU, CCAvenue and startups like RazorPay.
“We have a long and deep relationship with India, having supported and partnered with some of its most dynamic entrepreneurs and new tech businesses since 2005. We’ve invested close to $6 billion in Indian tech to date, and this deal will see that increase to more than $10 billion,” said Bob van Dijk, group CEO of Prosus.
Srinivasu of BillDesk said the investment by Prosus validates the significant opportunity in India for digital payments which is being propelled by innovation and the progressive regulatory framework put into place by the Reserve Bank of India.
The behemoth
Together, the two expect to create a financial ecosystem handling 4 billion transactions annually – four times PayU’s current level in India,” the company said.
